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The USDJPY has kept the bullish run to the upside going with a move to 136.615. As outlined in the earlier post, a topside trend line connecting recent highs cuts across now near 136.93 (and moving higher). That is the next upside target for the pair. Move to it, and there may be some leaning sellers.
Earlier today, the price broke above last week’s high at 135.579 and that increased the buying momentum. It also set that area as support on the hourly chart. It will now take a move below to increase the bearish bias in the short term.
Any other close support levels?
Drilling to the 5 minute chart below, the price remains above the lagging 100 bar MA at 136.325. Staying above that MA keeps the short term bias firmly in the buyers hands.
A move below does not kill the bull run, but it gives sellers something to lean against on a break. It also gives sellers “a victory” whereas they have not had one nearly all day.
A move below would target the 38.2% of the trend move higher today at 136.00 currently. That level is also near the base from the last leg higher (see 5 minute chart below).
If the sellers are to take back more control in the short term, they would need to get below both the 100 bar MA and the 38.2% retracement. Absent that and the buyers remain in full control with 136.93 as the next topside target.
