The USDJPY giveth and the USDJPY taketh away. Yesterday, the pair rallied strongly on the Fitch downgrade. Today the BOJ kept rates unchanged with no change in bond purchase program and the price came tumbling down.
Currently the price is testing the broken 100 hour MA at the 79.48 level A move above should lead to further upside momentum. Not far below this level is the 61.8% and floor/ceiling over the last few days at the 79.43 area (see chart above).
The market has a decision to make at this area. Continue the trend move lower or break above and rotate back to the upside.
The next target on the topside is the 79.57, 79.70 and the 200 hour MA at the 79.78 currently. A move below the 79.33 opens the door for a move to 79.20 and the low from Friday at 79.00.
Decision time.