USDJPY pulling back to 200MA

Morning

I hate it when i cant sleep... Was in the office at 3am this morning for these trades...

USDJPY seems to be pulling back to 200ma.

Look how the 20ma crosses the 50ma yesterday. Been long with a stop below 103.00. Looking for pullback to 200ma. What i call my elastic band theory. Works very well...Any thoughts?


http://media.mdsmarkets.com/Images/usdjpy 60.gif

May I ask you why you think it is going to pullback to that point?

(Am still a newbie and I am trying to learn how you can understand these types of charts)

What i am looking for in FX is to find a market that has been oversold or overbought.

In this case the USD has been oversold... All currencies will come back to their 200ma at some point in time. It all depends on what time frame you are looking at. This is what i call the elastic band theory. The further u r away from the 200ma the more aggressive the pullback. Generally the 20ma will be the support or resistance...

Take a look back at historical charts and it always comes back to base (200ma)...