The 200 bar MA on the 4-hour chart stalls the fall
Today, the USDJPY fell to a low of 108.948. The 200 bar MA on the 4-hour chart at the time? 108.97.
Close enough.
Is it a low for the pair after a run lower this week that saw the price move from a high of 111.39 to a low of 108.948?
Maybe.
At the very least I should give traders more confidence to buy against the level on another dip.
In reality there are a number of support levels in play.
- The first is at 109.15,A That was the swing low from May 11.
- The second is the rising 200 bar MA on the 4-hour chart
- The third is the 38.2% of the move up from the 2018 low at 108.796.
If the price goes below each, there should be more buyers. I would not want to see a move below the 108.796 level though.
So look for dip buyers to lean against the aforementioned lows going forward. The 200 bar MA should be a key level, but a move below the 38.2% should be indicative of more correction to come.
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