The USDJPY broke below the 100-day moving average and scooted all the way down to the 200-hour moving average at 155.98. The price moved below that moving average on its way to a low price of 155.793 before bouncing back to the upside. Recall from Monday’s trade after the intervention, the price also moved below its 200 hour MA on 4 separate hourly bars, only to fail on each of the separate hourly bar breaks.
Can the price NOW stay below that moving average and probe lower? That is the question for traders.
The 50% midpoint of the April trading range is now the next target at 155.50. Move below that level opens the door for more downside momentum as more liquidation can be anticipated.
On the top side staying below the 100-hour moving average at 157.028 is needed to keep the sellers in play. .
This article was written by Greg Michalowski at www.forexlive.com.
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