Both longer-term moving averages are near the same level. Key barometer for both buyers and sellers
The USDJPY is up testing its 100 and 200 day moving averages. The 100 day moving averages at 108.294. The 200 day moving average is 108.315. The current prices trading right at those levels.
The area is a key barometer for both the bulls and the bears. We should see sellers against the level on the 1st test. However traders would need to see the price moved back below the 108.08 level. That level was the ceiling going back to April and May.
On a move above, the door opens for further upside momentum.
When the 100 and 200 moving averages converge along with the price, I call the convergence "Three's a crowd". It is indicative of a market that is non-trending. Non-trending markets transition to trending markets. As a result traders should be prepared for a move away from those moving averages and be prepared for a move away.
Key level.
