The USDJPY has corrected lower in trading today after reaching the highest level since November 10 on Friday and extending above the 61.8% retracement on Thursday’s trade at 142.492. That retracement level down to a swing level at 142.246 is now a bias-defining level on the daily chart. That is, the price would need to move below that area to increase the bearish bias. Absent that and the buyers are still more in control.
Join to the hourly chart, the price did correct lower in trading today, but has seen a bounce back in the New York session. The low price today stalled ahead of the 38.2% retracement of the move up from last week’s low to last week’s high. That retracement level comes in at 142.849. It would now take a move below that retracement level and then the 50% and rising 100-hour moving average at 142.535 to increase the bearish bias.
Of note is that last week on Tuesday, Wednesday, and Thursday the price based against the rising 100-hour moving average. Staying above kept the buyers more in control.
This video explains in detail the bias-defining levels and explains why. It also outlines where that bias would shift more in favor of the sellers. Until then the trend to the upside remains your friend.
This article was written by Greg Michalowski at www.forexlive.com. Source