USDJPY retracing gains after run higher stalls ahead of topside targets

Technical Analysis

The
 
 USDJPY 
moved higher in the Asian session helped by the Lavrov/Blinken meeting announcement. The USDJPY moved higher as did stocks but the pair stalled well ahead of its falling 100 hour MA currently at 115.378 (blue line) and just above the broken 38.2% at 113.236. The high reached 115.29.

The move down in stocks on the reversal of the optimism in early US trading today, has seen the price move back below the 115.00 level to 114.96. The 50% midpoint of the 2022 trading range comes in at 114.898. A move below that level would tilt the “see-saw” price action back in favor of the sellers.

Admittedly, the price action yesterday and earlier today did crack below that 50% midpoint level only to fail on the breaks. The news flow is just too unpredictable and ever-changing. One minute, there will be something good, followed by something not so good. That contributes to the choppy up-and-down price action in the USDJPY.

From a bigger technical picture, getting back above the 100 and 200 hour moving averages would be needed to increase the bullish bias. Conversely, moving and staying below the 50% retracement would give the sellers more confidence.

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