The USDJPY has had its share of ups and downs in trading today.
In the NY session the high reached up toward resistance at 144.58.That level represents the 50% of the pair trading range from the January 2023 low (see the chart above). The high price in the Asian session reached 144.45 which also was just below the high from Friday at 144.49.The high price in the NY session today reached 144.35, before rotating back lower.
THe price is now below another 50%. That is the 50% off the hourly chart at 143.385 (see the hourly chart above). If the momentum lower can continue, the rising 100-hour MA comes in at 142.896. That MA was also tested on Friday on the dip as the BOJ was preparing for it’s rate decision. The BOJ was more dovish and the USDJPY moved higher.
Now the dust is settled, and the Fed cut 50 bps/the BOJ kept rates unchanged. Will that push the pair lower and can the price get below the 100-hour MA in the process? That would increase the bearish bias and have traders looking toward the 200-hour MA at 143.07
While the 100 hour MA was being tested on Friday, it was also testing the 200 hour MA at the time too.
This article was written by Greg Michalowski at www.forexlive.com. Source