The USDJPY story is about 2 charts. The daily chart defined the topside where sellers showed up. The hourly chart is defining short term support.
Looking at the daily chart, it stalled the rise when resistance against the November 21 high at 142.246 was reached. The high prices today reached 142.247 just above that level. Sellers leaned price rotated to the downside.
The decline today saw traders looking toward the 100-hour moving average currently at 141.112 (blue line on the hourly chart below). The price got within 16 pips of that moving average level on the price decline today, before bouncing back to the upside.
The close support now comes against the high price from last Thursday’s trade and the low price from yesterday between 141.431 and 141.497. Although the price moved below that area earlier today, the early North American session has seen a bounce back above it.
SUMMARY: Staying above 141.43 to 141.49 in the short term will keep the buyers more in control and have traders looking back toward the highs from yesterday and earlier today. Move below and a retest of the 100-hour MA at 141.11 (and moving higher) would be the next key target on the downside for the pair.
This article was written by Greg Michalowski at www.forexlive.com. Source