The USD/JPY rebounded from an earlier dip in the Asian Pacific session, hitting new weekly highs and testing the 38.2% retracement level at 151.736 in the London morning session. Sellers stalled the pair near that MA coming into the US session with the price trading around 151.52 at the start of the US trading.
However, ther dollar buying seen in the early US session has seen a rotation higher with momentum. That run to the upside has now seen the price reach and breach the key 200-day moving average at 151.984. This level previously acted as resistance on November 28, when sellers regained control and drove the pair lower.
The move above the 200-day MA extended up to the next target at the falling 100-bar MA on the 4-hour chart. That level comes in at 152.14, where sellers have leaned on the first test.
What next?
With the price trending to the upside to start the new trading week, the buyer are taking control. However, the MA targets are giving traders cause for pause.
Move above the 100-bar MA on the 4-hour chart would have the buyers looking back to the 50% at 152.69. Alternatively, if the momentum fades and profit taking pushes the price back below the 151.98 level, a retest of the broken 38.2% at 151.736 could be in the cards with the buyers and sellers battling it out at that retest.
This article was written by Greg Michalowski at www.forexlive.com. Source