The USDJPY fell quickly from a high of 151.90 down to a low of 151.20. There was nothing newsworthy to prompt the fall, but traders will chatter about fears of Bank of Japan intervention.
The low price did find early support buyers against its rising 100-hour moving average at 151.113 (see blue line on the chart above), and has already bounced back toward the 151.50 level.
After 5 straight days to the upside, and a 6 day looking good this morning, the fall reminds us that there still is some anxiety about intervention. In addition, the high price also got within 3 – 4 pips of a 32 year high at 151.938 (see post here).
The closing level from Friday was at 151.53. That level may be a short-term barometer. The October 31 high at 151.707 will also be eyed now as a potential resistance level.
This article was written by Greg Michalowski at www.forexlive.com. Source