In the minutes after the crash in the USDJPY earlier today, the low reached 148.51 not once but twice (see green numbered circles one in 2 in the chart below).
However, when you look at the hourly chart, you don’t see those lows because they were part of the spike low bar. Nevertheless, keep that level in mind going forward.
Ahead of that level, the pair is approaching the 50% midpoint of the move up from the September 22 low. That level comes in at 148.734. The low-price reached 148.70 but bounced back higher. The price currently trades at 148.76.
If the price is to go lower, getting and staying below that level would next target the 148.51 level from the 5 minute chart. That level also corresponds with the swing low from Friday’s trade (the hourly chart below) and is part of a swing area between 148.449 in 148.518 (see green numbered circles).
On the top side, it would now take a move back above the 200-hour moving average at 149.026 to tilt the bias back to the upside.
This article was written by Greg Michalowski at www.forexlive.com. Source