Trades to new session lows
The USDJPY moved higher initially on the FOMC decision and in the process tested its 200 bar moving average on the 4 hour chart. In the pre-decision technical look I commented:
On a move back above 107.359, watch for a move above the 107.45 level. That is the 200 bar MA on the 4-hour chart. That level may be a key barometer that will give buyers more confidence.
The price high peaked at 107.455. The barometer stayed to the downside. The price moved lower.
We are currently testing the 107.00 level. A move below targets 106.85.
Be aware however that the USDJPY is following the dollar lower path, but could get caught up in stocks moving higher path and a flow out of the "relative safety of the JPY" story, and/or the drag higher from the JPY crosses (they are moving higher). So, dips may be bought, but try to use technical levels to defined and limited risk.
