USDJPY runs up to test the 100 hour MA. Key MA target reached. Do the sellers come in? | Forexlive

The USDJPY has followed the US dollar higher and is testing its 100 hour moving average 136.462. That move higher comes after the pair moved above the 38.2% retracement of the range from last week’s trading. That was also where the price stalled on Friday on the initial spike after the jobs report. The 38.2% retracement comes in at 136.009. It is now a close risk level for buyers looking for more upside momentum.

So far, sellers have kept a lid against the 100 hour moving average. Risk can be defined and limited against the level and traders will use that to their advantage (stops on a break above).

On a break, the 50% of the move down last week comes in at 136.750 and would be the next target for buyers. Above that and traders will look toward the falling 200 hour moving average 137.676.

Last week, the price spiked on Wednesday and reached above the 200 hour moving average (green line in the chart above) on a single hourly bar (at 139.682).

However momentum quickly faded, and the price moved back below that moving average level and then used the 200 hour moving average as resistance.

On the downside, a break back below the 38.2% at 136.00 would look toward 135.81 (a swing low from Thrusday). Move below that and sellers add to their control in the short term.

Meanwhile, US yields have moved higher on the better-than-expected data with the ISM nonmanufacturing index rising to 56.5 will above the 53.3 estimate.