Forex technical update. USDJPY stays under 200 day MA

Trades around the cluster of support area

Earlier the USDJPY moved below the 200 day MA at 111.846, the 100 day MA at 111.736. The 200 bar MA on the 4-hour is at 11.753. Finally, it also fell below the the 50% retracement at 111.637 (see earlier post).

The price today broke below that cluster of support.

The low made it to 111.547, but then rebounded. That is a bit of a disappointment. Getting below all that "stuff" should have solicited more selling momentum. Eyebrows are raised by the shorts

The saving grace for the bears is that the correction higher stalled at the 200 day MA. The high corrective price reached 111.85 - right at the 200 day MA level.

In my earlier post as the price was moving lower, I wrote:

"The sellers are making another run at the key cluster of support. Yesterday was test #1 and the price rebounded. Stay below the 200 day MA now at 111.846 to keep the sellers firmly in control. A move above, and the sellers here, will be scratching their heads."

The seller did make another run and the run failed. However the corrective move back higher also stalled at the 200 day MA level at 111.846.

So although eyebrows have been raised by traders as to the strength of the selling, those traders are not scratching their heads (just yet at least). Stay below the 111.846 level and the sellers are still more in control.

Let's block ads!(Why?)

Read Again Forex technical update. USDJPY stays under 200 day MA : http://ift.tt/2tGYINd

Let's block ads! (Why?)