As we head toward the end of day, the MA technicals for the USDJPY are painting the risk and bias defining levels for the pair.
Looking at the hourly chart above, the price action today took the price above the 200 day moving average (overlaid green line currently at 137.412). The break above took the price up to 137.906, but momentum could not hold above the MA and buyers turned to sellers.
The price fell back below the 200 day MA in the London morning session, and stayed below for the entire North American/US session.
The low for the day reached in the US session, found buyers against the overlaid 100 day moving average and the 100 hour moving average both at 136.455 (see blue lines on the chart above). Just below that level is the 200 hour moving average currently at 136.377. All three of those moving averages are starting to get closer and closer together.
That convergence increases the areas importance going forward.
The price rebound over the last 5-6 hours has seen a high of 137.326. That high got within about nine pips of the 200 day moving average level.
So overall, the hourly and daily 100/200 moving averages are defining the key levels for the USDJPY buyers and sellers.
Overall I give the nod for the "most control" to the buyers. Holding support against the 100 hour/100 day moving average and the 200 hour moving average is more bullish.
However, getting above the 200 day moving average is still what the buyers would love to see, but on the other side, a level that sellers are hoping puts the lid on the USDJPY.
Be aware. Key levels are in play and the market traders will be looking for the clue from the price action in the new trading day.
