The USD/JPY currency pair saw its share of ups and downs in today’s trading.
In the New York session, the high reached the resistance level at 144.58. This level represents 50% of the pair’s trading range from the January 2023 low (see chart above). The Asian session high reached 144.45, which was also slightly below Friday’s high of 144.49. Today’s New York session high reached 144.35, before pulling back again.
The price is now below another 50%. This represents the 50% of the hourly chart at 143.385 (see hourly chart above). If the downward momentum continues, the 100-hour moving average is trading at 142.896. This moving average was also tested on Friday at the lows as the Bank of Japan prepared for its interest rate decision. The BoJ was more dovish and the USD/JPY pair rose.
Now that things have settled down, the Fed has cut interest rates by 50bps and the Bank of Japan has left rates unchanged. Will this push the pair lower and could the price break below the 100-hour moving average in the process? This would increase the bearish bias and prompt traders to look towards the 200-hour moving average at 143.07.
While the 100-hour moving average was tested on Friday, the 200-hour moving average was also tested at that time as well.