USDJPY moves toward key resistance against 200 day MA

• gregmikefx
• January 7th, 2010

The USDJPY is moving higher this morning on the back of new Finance Minister Kan’s comment that he supports a weaker Yen.  The price is approaching key resistance, however, against the 200 day MA at the 93.56 level.  There should be sellers against the important  level with stops if the price level can be broken to the upside.  This level today will be eyed very closely today.

Intraday support comes in at the 50% retracement of the move down from the April 2009 high to the November 2009 low (see Daily Chart above).  Further downside support would come at the 92.90 level which is the 38.2% retracement of the days trading range.

The USDJPY is somewhat overbought at the moment as evidence from the distance between the 100 bar MA on the 5 minute chart (blue line above) and the current price.  With key 200 day MA resistance looming, look for some slowing/consolidation of the move higher. This will allow the moving averages to catch up with the market price.  From that point the market can decide if it wants to extend higher or correct further.

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Tickers: USDJPY

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