Price is back below the 200/100 hour MAs
The ups and downs continue in the USDJPY as the pair has erased the gains from yesterday.
IN the move higher yesterday, the price moved above and then based at the 100 hour MA (blue line currently at 113.849). The move higher did extend above the swing highs from Thursday and Friday near 114.203, but wandered lower (and below the level) into the close.
In trading today, the Asian session high stalled near that swing high area (at 113.203) and cracked back below the 200 hour moving average and then the 100 hour MA, tilting the bias back to the downside. That is where the price remains over the last 5-6 hour.
Since October 12, the price has traded between 113.21 and 114.69. The the range has been even more narrow over the last 4/5 trading days (around 92 pips). With the price back below the moving averages near the middle of the red box range, the bias tilt is lower. It will take a move back above each of the moving averages to tilt the bias back to the upside. Such is life in an up and down trading range market.
So right now, the bias is to the downside. The next target would be the low for the week at 113.396. Below that and traders will look toward the 38.2% retracement of the move up from the October low to the October high at 113.21.