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USDJPY is moving towards the key support target on the downside.  Is it time for a break?

 | Local Business News

USDJPY is moving towards the key support target on the downside. Is it time for a break?

| Local Business News | Fox News


The USDJPY price has been limited to a range up and down for almost 4 weeks.

USDJPY has been stuck in an up and down trading range since Oct 12 between 113.21 (aside from two hourly bars) and 114.691. This week, Monday’s high shot above a swing area between 114.03 and 114.307. The high reached 114,438 before going back down and reusing that oscillation zone as resistance once more (green circles 6, 7, 8 and 9).

Yesterday’s price moved away from that swing zone and was back below the 100/200 hourly MA (the blue and green lines currently converge at 113.86).

In today’s trading, the price remains below the moving averages until the release of the US employment report.The price rose higher in the headline but quickly reversed lower. Since then, price action has been slowly but steadily down.

The pair has just hit a new intraday low of 113.29. That is also a new low for the week. The pair has entered a swing area between the 38.2% retracement of the move from the October 4 low at 113.21 to 113.396. There have been a number of swinging lows within that area dating back to October 12. The last one was during last week’s trade (red circles numbered eight and nine).

A move below 113.211 (and staying below) would increase the bearish bias of the pair. The next target would come at the low of 112.996 from October 12 (call it 113.00). Below that and the midpoint of the 50% move up from the Oct 4 low is at 112,754.

Holding support near 113.21 is also a possibility as risk can be defined and limited. Contrary to that idea, the price has been within the trading range for almost 4 trading weeks (19 days). At some point, traders get tired of trading in a 140 pip trading range. They seek to move from what is not a trend to what is a trend.

As a result, there is a chance that this week’s highs on Monday, Wednesday, Thursday and today have again shown increased selling interest. Even attempts to the upside above resistance have run into fast sellers, namely the move above 114.307 on Monday and the move above the converging 100 and 200 hourly moving averages today.

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cnbctv18-forexlive-benzinga -Sp

USDJPY is moving towards the key support target on the downside. Is it time for a break?

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