The USDJPY moved lower after the Bank of Japan interest rate decision (no change) and statement/press conference. However, although the price was able to break below its key 100-day moving average at 147.557 and 61.8% retracement at 147.45, the price did find early buyers against its rising 200-day moving average (green line in the chart below). That level comes in 147.002 currently.
The subsequent move back to the upside has now retraced the entire move lower, taking the price back into a swing area between 148.45 and 148.59 that swing area is ahead of the extreme from last week’s trading at 148.802. Getting above those levels opens the door for further upside.
In the video I also take a look at the daily chart. The last four days have seen the price close above it 100-day moving average. The break back below that moving average today threatened the upside momentum.
However, getting back above that moving average level gives the buyers new hope, and opens a door for a potential move toward the high from November 2023 at 151.909, and the high from October 2022 just three or four pips higher at 151.945. There is still a lot of room to get to that target, but staying above the 100-day moving average would keep that bias hope alive.
This article was written by Greg Michalowski at www.forexlive.com. Source