Despite yields moving higher (curve steepening continues to drive the debt market), the USDJPY is moving to a new session low and in the process is testing (and now breaking ) below is 100 hour moving average at 142.49. Stay below the moving average level keeps the sellers more in control in the short term at least with more work to do.
The buyers earlier in the session Heather shot on the break of 143.44 – 143.54 swing area, but the run to the upside target between 144.12 and 144.22. When the price move back below the 143.44 level, buyers turn to sellers and pushed to the downside.
On the daily chart, there is a swing area between 142.23 and 142.65. The prices currently between that level. Break below however and we should see further selling momentum in the USDJPY pair.
Yields moving higher but so far it is not supporting the USDJPY. Watch the 142.23 level for short-term controls.
This article was written by Greg Michalowski at www.forexlive.com. Source