The USDJPY moved higher helped by comments from BOJ’s Ueda who seem to support continued yield curve control. The BOJ will announce her latest interest rate decision next week. There was speculation of the YCC measures being changed.
The price of the USDJPY moved above its a 200-hour moving average (currently at 139.657). The high price reached 139.988 just short of the natural resistance at 140.00. The price has since rotated back to the downside and currently trades below the 200-hour moving average.
That is a problem for the buyers from a technical perspective. Stay below that 200-hour moving average and we could see further probing to the downside in this pair on the disappointment from the first break above that moving average level since July 6.
Conversely, if the price can get back above that moving average level at 149.657 and then above the 139.750 level, a rotation toward the 38.2% retracement of the move down from the end of June high at 140.224 would be targeted. That is near the low of another swing area up to 140.452.
Getting above the 38.2% retracement of a trend-like move is the minimum retracement target to show that the trend correction buyers are serious.
So buyers may apply today, but they are failing on the move above the 200 hour moving average. Can they regroup and push back higher? Or is the corrective move over?
This article was written by Greg Michalowski at www.forexlive.com. Source