The USDJPY has been in a quiet range in the NY session. The low in the NY session has gone down to 90.21. The high has reached 90.48.  The price is trading in between the two extremes at the 90.35.  This is also where the 100 and 200 bar MA on the 5 minute chart is found.  The close on Friday was 90.33.  The price is at it’s equilibrium level.

The consolidation is not all surprising. On Friday the price moved from a low of 88.97 to the high today at 90.67.    The low on Thursday was down at 88.12.  The 257 pip surge higher from low to high was completed in 2 days of trading.  That move higher retraced around 61.8% of the last trend down from the high of 92.14 on Feb 19th to the low on March 4th and took two weeks to complete.  That level comes in at 90.60. The high today reached 90.67 but reversed after losing upside momentum.

On the downside, support remains at the 90.13/15 level> The 90.13 is the midpoint of the high to low range of the move down from the FEb 19th high (see hourly chart above).  It also is close to the 100 day Moving average level at 90.15 currently  (see blue line in the chart below).

As a result, look for support at the 90.13/15 level to continue to be supported.  However, with the sharp move higher, the market may continue to consolidate the sharp gains and allow some time to pass in order to build up the momemtum for another leg higher.

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