February 4, 2023

USDJPY up, down and up day, but keeps bullish bias.

USDJPY on the hourly chart

The USDJPY has had an up, down and back up day.

The lows for the day did take the price below the 100 hour moving average and upward sloping trendline on the hourly chart near 115.02 (it is currently at 115.049), but momentum could not be maintained. The rise in yields also help contribute to the dollar buying including in the USDJPY.

The high price did extend above the earlier high for the day but only by a pip or so to 115.363. The current price is trading at 115.301 near the highs for the day.

The high today was also the highest level since November 26. Get above that level and traders will start to target the high for the year – and the highest level going back to 2017 – at 115.513.

On the downside watch the swing area between 115.146 and 115.231 (see red numbered circles in the chart above). Move back below those levels and a retest of the 100 hour moving average would be likely. So far the correction off the high has been able to hold the high of that swing area. Bullish.

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