Pair extends below swing area but stalls at 100 hour MA
After an 18 pip trading range yesterday, the USDJPY has just up that range to 34 pips from 24 pips. The fall took the price below a swing area between 109.839 and 109.952, but the rising 100 hour moving average at 109.803 stalled the fall.
It will take a move below the 100 hour moving average to tilt the bias a little more in favor of the sellers with the 200 hour moving average at 109.65 as the next target.
With the range still so narrow, a move back above 109.952 would give the dip buyers against the 100 hour MA some solace from a trading perspective ahead of the Fed decision.
Of course the Fed decision should give the market some sort of goose outside of the recent modest ranges. The key hurdle on the downside would be the 200 hour moving average. Move below it and the pair can probe toward the June lows at 109.296, 109.218 and 109.183.
On the topside, getting above 110.19 and the June high at 110.324 would have traders looking toward the March 31,2021 high (and highest high going back to March 2020) at 110.96. Move above that level and it is more open road ahead with 111.70 and 112.238 (the 2020 swing highs from March and February) the next major upside targets.
