The USDJPY fell sharply in the Asian session after breaking below a swing area at 154.778 and 154.878. The fall saw the price move to and through another target area near 153.99 (call it 154.00).
The low-price extended down to 153.595 before starting its rebound to the upside. That rebound saw the price initially move to the low of the aforementioned swing area near 154.77 and 154.878. Buyers later took the price with more momentum.
That last one and take the price back above eight 200-hour moving out of 155.38 and through the 50% of the move lower this week (at 155.173). Those two levels are now close barometers for both buyers and sellers. Moving below 155.17 would be more bearish in the short term. Moving above the 200-hour moving out at 155.38 would be more bullish.
On topside, the 100-day moving average comes in at 155.721. That would be a target to get to and through on more momentum.
A move below the 155.17 would have traders looking back toward the swing area near 154.80.
The battle lines are drawn.
This article was written by Greg Michalowski at www.forexlive.com. Source