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Eaelier today, the USDJPY moved up to test the 200 hour moving average at 155.191, and found willing sellers. The price in the early New York session moved back below a swing area between 154.52 and 154.878, and has now gotten another push lower on reports that the BOJ board members are to discuss raising rates to 0.25%. The BOJ will announce their rate decision in the new trading day in Japan.
The price of the USDJPY moved down to test the 100-hour moving average at 153.779, and has found support buyers against the level (low reached 153.81). The current price trades at 154.15.
WIth the 200-hour moving average (green line on the chart) holding resistance above, and the 100-day moving average (blue line) holding support below, the market has set the technical “bookends” that need to be broken (either on the downside or the upside) to increase the technical bias in the direction of the break. That is good news to know.
Looking at the 4-hour chart below, the price has been stepping lower over the last 3 or so weeks. Last week, the low reached down to test a key swing area near 151.93 and found early buyers against that key swing area.
The price did move below the 38.2% of the move up from the December 2023 low at 153.654. The low price today stalled right near that 38.2% level, giving the buyers the go-ahead to push higher. That 38.2% is also a key technical level that if the pair is going lower, needs to break and stay broken.
This article was written by Greg Michalowski at www.forexlive.com. Source