Forex Trading: The Bias For USD/JPY Is To The Upside

The USD/JPY moved back above the 100 hour moving average (blue line in the chart above) currently at the 94.99 level as the Yen comes under pressure following the N.Korea nuclear test today.  Back in early April a long range missile was shot over Japan into the Pacific ocean.  Although no tests of such magnitude was conducted today, there were reports of shorter range missile tests.  Clearly, the tension in the region, has the JPY on the defensive.

The high price for the day has been 95.19 so far today.  The last 4 hours have traded near the level, but has not been able to extend the range.  The bias is to the upside with a break of the high targeting the 200 hour moving average at the 95.33 level (green line in the chart above).

On a break of the 95.33 level, the next target resistance comes in at the 96.07 level which corresponds to the 38.2% retracement of the move down from the May 7th high to the low reached on Friday.

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