The USDJPY has been able to grind below the 109.50 level, the 100 hour MA and even made it to the 200 hour MA at the 109.09 area (@Pippin). That low also corresponded with the low from Sept 29th. The price has not traded below the 200 hour MA since August 18th. KEY LEVEL (see PRIOR POST)

Technical Analysis: USDJPY trades below the 100 hour MA, but above the 200 hour MA

Technical Analysis: USDJPY trades below the 100 hour MA, but above the 200 hour MA

The price now trades “between the Goal Posts” defined by the 100 and 200 hour MAs. We know that all of last week, the price reacted to the 100 hour MA. When the price moved above, it tended to continue higher. When it went below, it tended to move lower (at least for a little while – follow blue line in the chart above). The problem was the price could not keep the momentum.

The correction off the 200 hour MA today is so far holding below the 100 hour MA. HMMMM. Key level to stay below for the shorts.

Will that break below keep a lid on it today and if so, will it have enough “oomph” to push it through the 200 hour MA for the 1st time since mid August? If so 108.83 – 38.2% of the move up from the September 16th low – should not be far behind. Below that 108.44 at the 50% and low floor area (see hourly chart) is a stronger support level/target. Key battle going on between the goal posts.