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USDJPY waffling back and forth

Posted by Greg Michalowski on Tue, 12/18/2007 - 9:59am in

USDJPY testing 21 hour MA at 113.15.  Having said that, the price has been above and below the moving average 5 times in the last day and a half, indicating a consolidation of the pair.  A break above the high at 113.58 or the low of 112.74 will be needed to determine the short term direction.

On a longer term basis, the pair continues to have resistance at 113.66 the 38.2% retracement level of the entire corrective move from 124.14 to 107.19.  Above 113.66 is the 100 day MA at 114.34 (trendline resistance is at that level as well (see chart below).  A break lower (below 112.74) would target 112.00 and then 111.20 where there should be good support.