The USDJPY has continued its march the upside with a run to a new session high.
Earlier today, the Bank of Japan Policy was unchanged. The initial reaction was a run to the downside with the low price reaching 154.96. That took the price just below its 100-hour moving average but stalled ahead of its 200-hour moving average (blue and green lines on the chart above). Sellers had a shot. They missed. The buyers remained in control.
The subsequent bounce-back rally as seen from fits of ups-and-downs but buyers still remained in control.
You can see that on the 5-minute chart below. There was a dip in the London morning session that took the price toward the 100-bar moving average on a chart (blue line on the chart below). Buyers came in and snapped the price back to the upside.
The other corrective moves have not approached the rising 100 bar MA.
That 100-bar moving average currently comes in 156.695. It would take a move below that moving average (and it is moving higher) to give the sellers a victory technically. Absent that, and the buyers remain firmly in control.
When the price is trending, it is best to let the price action tell you when a top may be in place. Remember that corrective moves may also be limited as trends are fast, directional and tend to go further than expected. It is up to the seller to show they can take control.
The price is now up to 157.25….
This article was written by Greg Michalowski at www.forexlive.com.
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