As stocks started to slide and US rates also came off of it's highs, the USDJPY started a reversal to the downside.
The current hourly bar has seen the price of the pair move from 146.16 to a low of 145.63. That move to the downside, took the price within 5 pips of its 100-hour moving average at 145.586.
The last time the price traded below its 100-hour moving average was back on August 8. A break below the level would open the door for further selling momentum. The next target would be the low from yesterday at 145.293 followed by a swing area between 144.88 and 145.10. The rising 200-hour moving hour and 30.2% retracement both at 144.64 is also a potential target going forward IF the 100 hour MA can be broken and remain broken.
So far, however, the buyers have leaned against the 100-hour MA successfully. A move above 145.88 (broken trend line) would give the dip buyers some added confidence technically.
