The USDJPY is trading between its 100 and 200-hour moving averages ahead of the FOMC rate decision at 2 PM ET. The 100-hour moving average comes in at 141.12. The 200-hour moving average comes in at 139.966. The current price is trading at 140.30.
Staying between the moving averages is a more neutral area for both buyers and sellers. There is a battle going on. Traders are looking for the next shove. That might have to wait until the Fed rate decision.
The current battle will be decided on a break of either of the moving average extremes. Moving above the 100-hour moving average is more bullish. Moving below the 200-hour moving average is more bearish.
On a break of the 100-hour moving average AND the 50% midpoint just 4 pips higher at 141.149, will have traders looking toward the high price from last week near 142.00 (the high price reached 141.945 last week), followed by the 61.8% retracement 142.073.
On the downside move below the 200-hour moving average at 139.966 and the low of a swing area at 139.750, opens the downside with a swing area between 138.73 and 139.00. Below that and it opens a door for a run toward the 100-day moving average over time. That moving average currently comes in at 137.314 which is just above the low price from July at 137.23.
This article was written by Greg Michalowski at www.forexlive.com. Source