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The USDJPY is engaged on its third down day in a row after peaking on Friday and beginning a retracement transfer again to the draw back.
The autumn immediately did attain the 50% retracement of the transfer up from the January 24 low to the excessive reached on Friday. That stage got here in at 114.572. The low worth immediately reached 114.559 earlier than reversing again to the upside. The pair additionally stayed above its rising 200 hour shifting common at 114.495 (inexperienced line within the chart above).
The transfer to the draw back yesterday stalled the autumn proper at its 100 hour shifting common (blue line). That shifting common was damaged within the Asian session immediately, and stayed under on corrective strikes after that break.
Because of this, the pair is consolidating between the 200 hour shifting common under at 114.498, and the 100 hour shifting common above at 115.103. The present worth is buying and selling at 114.76.
Taking a broader have a look at the day by day chart, the low worth from final week stalled close to the low worth from January 14. That was additionally close to the 38.2% retracement of the final transfer larger from the August 2021 low to the January 2022 excessive (at 113.430) and the rising 100 day MA. Evidently, going ahead that space from 113.43 to 113.56 (100 day MA) will likely be a key stage to get under if the sellers are to take again extra management. Remember.
On the topside, the excessive worth on the final corrective transfer to the upside did get above the November 2021 excessive (which was additionally the excessive worth for the yr at 115.513. The value reached 115.68 earlier than rotating again to the draw back. Shifting again above 115.513 must be met with enhance momentum on the following break (if it occurs).
For now, the borders have been set for merchants. On the topside the 100 hour shifting common at 115.10 is the shut upside goal. On the draw back the 50% retracement 114.57 and the rising 100 hour shifting common at 114.50 are the targets. In between, the place we commerce at present, the patrons and sellers will battle it out for management.
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