The USDJPY saw a notable decline during the U.S. trading session, with its downward movement intensifying after breaking below the critical 148.00 level. This break led to a sharp drop, bringing the pair to 147.33, a significant swing low that previously marked the beginning of a rally to the recent Wednesday high. For a stronger bearish sentiment to take hold, the pair would need to breach both 147.33 and the November low of 147.143.
Looking at the daily chart, a fall below 147.1403 would shift focus to the rising 100-day moving average, currently at 146.90. Historical patterns show that previous tests of the 100-day MA, such as on July 14 and April 26, resulted in the price rebounding from this level, sparking new upward trends. Therefore, it’s likely that buyers might initially support the price at the 100-day MA. However, if the price decisively breaks below this level, those initially looking for a low-risk buying opportunity might switch to selling, reinforcing the bearish trend.
This article was written by Greg Michalowski at www.forexlive.com. Source