Some up and down chop in the USDJPY
The USDJPY moved to yet another new cycle high. The price traded to 110.96 (just short of 111.00 natural level). The pair has been up for 6 consecutive days now. Back on Friday, the pair finally broke out of the non-trend 103 pip trading range that confined the pair for 14+ days. Since the break, the pair moved 161 pips in 4 days. Non trend to trend.
The pair is higher today, but there is some ups and downs (choppy – different than what the pair has done on the way to the high today).
Looking at the hourly chart, the pair has seen lower highs and lower lows since the high was reached. A trend line has been broken but price action has been above and below that line over the last few hours.
Now….the correction of the last move higher (from Monday’s low) is still above the 38.2% of that move higher (PS it based on Monday against the high of the 103 pip trading range. So key support there).
If the sellers are to take back more control, getting below that 38.2% is needed. That would be a minimum if the corrective sellers are to start to build more support to the downside. Failure to do that, and the correction is still just a plain vanilla of the last trend move higher.
Drilling to the 5-minute chart below, may give some intraday bias clues. Looking at the chart, the 100 and 200 bar MAs have been broken. There was some up and down volatility around the MA, but the sellers prevailed. Watching those MAs now may give some technical intraday bias in the short term. Buyers want to see those levels broken to the upside. Sellers want to see it broken (and then work toward a higher high on the hourly).