Better data but USDJPY stalls at trend line resistanceThe Factory orders and the ISM non-manufacturing data were both better than expectations, but the topside trend stalled the rally at the 114.16 level. The pair has rotated back toward 114.00.
The data was good enough to give a push, but the technical trend line got in the way and it sellers were ready against the level.
It is Friday and there is that squaring up possibility. What we know, however, is that the topside trend line is now more solid (with the 4th point). So a break should solicit stops on a break, with 114.274 (high for the week) the next target on a break. The 114.39-49 is where swing highs from May, July and October stalled. Key level.
On the downside, the 200 and 100 hour MAs (green and blue lines) remain a key area below. Closer support? Intraday maybe the 114.00 natural level. That has been the low post the 10 AM ET figures.