200 and 100 hour MA providing support
The USDJPY has moved lower in trading today. The failure to solicit buying interest above the highs from last week started the ball rolling to the downside in the Asian Pacific session. That trend continued into the European/London morning. As the price approached the 200 hour moving average (green line in the chart below), the momentum has started slow and the price action has been more consolidating.
The pair is currently trading between topside resistance against an old trendline and the MA support from both the 200 and 100 hour moving averages (at 119.63 and 119.57 respectively). The 50% retracement of the move up from last week's low, is also in that area (at 119.574). This area will be key from a technical perspective in trading today.
Fundamentally BOJ Kuroda said after keeping policy unchanged, that he sees less risk to the economy. This has dampened expectations for further easing. Meanwhile the FOMC meeting minutes will be eyed for any additional clues from Fed officials regarding the lift off. .
