MAs in play on hourly chart
The USD is lower in trading today and that includes the USDJPY as well. Like the EURUSD and the GBPUSD, the technical picture includes the MA's. More specifically, the 100 and 200 hour MAs. The story line is similar as the price action trades around MA levels on the hourly chart.
Looking at this pair's hourly chart above, the price of the pair first stalled at the 200 hour MA and bounced modestly. After the modest bound, the price moved below that MA line (green line) but ran into the 100 hour MA next (blue line). The price bounced again and trades back above the 200 hour MA.
That price action was the same pattern from yesterday's trading (hold the 200 hour, break the 200 hour MA, and hold the 100 hour MA).
The pattern may or may not do exactly what it did yesterday. It may continue the run lower. We really do not know. But what we do know is the break and bounce off support has reestablished the MAs as risk defining levels. Stay above and that bounce higher has a better chance. Move below and the bears are still move in control.
Of interest in the USDJPY hourly chart is that 8 of 9 hourly bars are lower. The only up bar was only a small gain. If we are to go higher, look for an up bar to help turn the bias a little more bullish.
PS. As soon as I finished, the USDJPY broke lower and ran stops (See 5 minute below). The sellers are keeping control with the MA lines now resistance for the shorts (i.e. risk).
