The USDJPY has been showing signs of support in trading today but still has some hurdles to overcome.
- The pair corrected to the 38.2% of the move up from the Dec 8th low and bounced yesterday (see hourly chart below)
- The low today held above the trendline resistance line which was also broken today. Currently the trendline comes in at 77.91. Staying above this level is needed to keep the shorter term buyers happy today. A move below and the good times may be over for now.
- The price last week bounced off the 100 day MA rather convincingly (see blue line in the daily chart below). This bounce signalled a willingness to buy the pair.
The hurdles ahead still remain a challenge.
- The high today at 78.14 has found sellers. This level corresponds with the high from November 30th (see chart above)
- The trendline off the April 2011 high on the daily chart below is approaching at the 78.25 area.
- The 78.27 level was the high price at the end of November. This coupled with the trendline at the 78.25 level are key levels for the market buyers. If they cannot push the price above these levels, look for sellers to re-emerge.