The USDJPY is trading between its 100 and 200-hour moving averages ahead of the FOMC rate decision at 2 PM ET. The 100-hour moving average comes in at 141.12. The 200-hour moving average comes in at 139.966. The current price is trading at 140.30.
Staying between the moving averages is a more neutral area for both buyers and sellers. There is a battle going on. Traders are looking for the next shove. That might have to wait until the Fed rate decision.
The current battle will be decided on a break of either of the moving average extremes. Moving above the 100-hour moving average is more bullish. Moving below the 200-hour moving average is more bearish.
On a break of the 100-hour moving average AND the 50% midpoint just 4 pips higher at 141.149, will have traders looking toward the high price from last week near 142.00 (the high price reached 141.945 last week), followed by the 61.8% retracement 142.073.
On the downside move below the 200-hour moving average at 139.966 and the low of a swing area at 139.750, opens the downside with a swing area between 138.73 and 139.00. Below that and it opens a door for a run toward the 100-day moving average over time. That moving average currently comes in at 137.314 which is just above the low price from July at 137.23.
