USDJPY consolidates after a trend week to the downside
The high for the USDJPY was on Monday at the 91.89. The low occurred yesterday at the 88.79 level. The price moved below the 100 hour MA at the 91.19 level on Tuesday, the trendline and 200 hour MA on Tuesday. Consolidated on Wednesday at the 100 day MA (at 90.16) and moved lower Thursday. Now the market is consolidating once again as the week comes to a close.
The Yens demand has come off the flight to quality bid as a result of slower global growth and the Greece situation. This should continue in the near term. However watching the technical levels are always important.
Looking at the shorter term chart the 100 and 200 bar MA on the 5 minute chart comes in at the 89.26 level. This suggests a non-trending type market and normally a move away is warranted. The price has respected the level in NY trade today with a few tests. On the downside, however, there has been some profit taking buying. The price below the 100 and 200 bar MA on the below chart gives a bearish bias. Confirmation of the move would come on a break of the 89.15 level and the low for the day at 89.00. If the price moves above the moving average levels, the bias switches and focus turns toward the 89.39 level where we have a ceiling developing.
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