Forex Trading: USDJPY Also Participating In Choppy Monday

The USDJPY went down and tested the 89.18 midpoint of the move up from Friday’s low in early NY trade and bounced.  The bounce higher has not been able to break above the 100 and 200 bar MA on the 5 minute chart (sellers against the moving average levels - see blue and green lines above) which keeps the wraps on the bulls.   

As long as the price remains below these moving average levels at the 89.33 and 89.37 levels respectively, the price bias remains to the downside.  A break of 89.18 - that is accompanied with downside momentum  - will look toward Friday’s low  at 88.81. 

On a break higher (above 89.37 blue line), the next key upside target comes in at 89.58 where the 38.2% retracement of the move down from the February 3rd high to the February 4th low is located.  The price held below that level today reaching a high of 89.55.  A break above is likely to see further upside momentum for the USDJPY.

Looking at the longer term chart, the 89.28 level is the midpoint of the move up from the November low. Above keep in mind the 100 day MA comes in at 90.15 as a key upside target price. On the downside, the old channel trendline comes in at 88.55 area.  The market has tested this old trendline on two occassions in the last few weeks - bouncing each time.  A break put the price back in the old range.  Look for buyers on dips toward this level - at least initially.