USDJPY attempted to move above the 100 hourly moving average at 138.457 (blue line in the chart below). The price moved above this moving average during yesterday’s trading, and was unable to maintain the momentum. Today, the price tried again but failed again. Reaching and staying above this level is key if buyers have more control going forward.
USDJPY cannot stay above the 100 hourly moving average
Absent that and the main support to the downside is near the 100 and 200 day moving averages around 137.06 (blue and green lines on the chart below), the swing zone on the daily chart will be targeted between 137.499 and 138.139 (see the red numbered circles on the chart below) The table at the bottom).
There is a major support that has held on the daily chart, but buyers still need to gain more control by picking up and holding above the 100 hourly moving average.
USDJPY on the daily chart
Update: The Bank of Japan Ueda has just stated that there is still some distance to go in order to achieve the 2% sustainable inflation target. He mentioned that the BoJ maintains an accommodative policy and pointed out that Unless the assumption about the need to achieve an inflation target changes, the monetary policy narrative will not. These comments indicate that Ueda Don’t be tempted to change the YCC policy at the end of the month. As a result of his remarks, the yen is weakening (USDJPY is rising). The price is above the 100 hourly moving average at 138.457. This is now considered a close risk level for the pair.
