On Thursday, the USDJPY fell sharply in the US afternoon session as the sellers in the stock market led to risk-off sentiment, lower yields, and that sent the pair to the downside.
Technically, the price fell back below its 100-hour moving average at 151.58, and it 200-hour moving average at 151.485. Recall that the price of the USDJPY moved above those dual moving averages on Monday, and stayed above those levels this week. The high price for the week reached 151.94 just two pips short of last week’s high (at 151.967). That level was the highest high going back to 1990.
So buyers had their shot earlier in the week. They missed and came up short of the high.
The sellers are now taking their shot and the moved back below the 100 and 200 hour moving averages. Going forward if the price can stay below those moving averages trades would start to look toward swing lows from the last few weeks starting with 151.14, then 150.997. After that traders would look toward the swing area going back to February between 150.718 and 150.88. Get below that area and there should be more corrective price action to the downside.
This article was written by Greg Michalowski at www.forexlive.com. Source