In the morning video, I talked about the 50% midpoint of the move up from the January 2023 low at 144.581. The price has been trading above and below this level over the past two months, but this week’s rally has returned to the level, giving traders a choice:
- Based on the midpoint level (i.e. sell)
- Breakout to the upside and go higher like it did last month.
Today’s high is 144.489, just under 10 pips away from the halfway level.
Waller’s comments from the Fed have now helped push the USD/JPY lower. Also in the morning video, I talked about the midpoint that represents 50% of the September trading range. This level comes in at 143.385 and is also the low of the swing area up to 143.79. The price is still above this swing area, but a move to this level would have traders looking to this midpoint.
Remember that USD/JPY has had a fairly large trading range. So, although the price is still 50 pips away from the lower bound, it is a fairly easy target. Can the sellers maintain the momentum and break below the midpoint level? If so, we should do some more bearish exploration.
Comments are closed, but trackbacks and pingbacks are open.