The USDJPY moved nearly 300 pips today with most of that move being to the upside.
Looking at the five minute chart, the pair closed at 128.42. The low price was just nine pips lower than that at 128.33. At the lows in the Asian session, the pair stalled near the rising 100 bar moving average. That ultimately led to a sharp move higher which kick started the near 300 pip move.
Since peaking at 131.246 around five or so hours ago, the price has consolidated with the low at 130.707. The current price is trading at 130.922. The consolidation has allowed for the 100 bar moving average to catch up to the price. The last hour or so has seen the price trade above and below that 100 bar moving average, but momentum to the downside has been limited to a low of 1.3080. The sellers aren’t exactly showing much strength.
Technically in the short term, it would not only take a move with momentum below the 100 bar MA, but also a a move below the 200 bar MA. The price of the USDJPY has not traded below the 200 bar MA since early yesterday. Getting below it would be a short term victory for those trading the pair, but the price would have to stay below the MA and start to take out lower levels like the 38.2% of the day’s trading range at 130.137 (near lows intraday as well).
See earlier post for a broader view of the price action.