The USDJPY broke below its 200 hour moving average today and buyers turned to sellers. Recall from yesterday, the 200 hour moving average did stall the fall, and that led to a bounce back higher in the Asian session.
The price bounce in the Asian session did extend back above its 100 hour moving average (blue line in the chart above at 134.402 currently), but could not maintain momentum.
The SNB surprise rate decision, sent the pair through the 200 hour moving average and down to a low at 132.304. That tested the intraday swing low from June 7 at 132.306. So far the level is holding, but on a break, the 38.2% retracement at 132.05 would next be targeted, followed by a swing area at 131.24 – 131.345. Below that, the 50% midpoint of the move up from the May 24 low at 130.963 would be another key target (and also was swing highs from June 3 and early on June 6).
For sellers looking for more corrective downside probing, the swing levels from June 6 to June 10 will be eyed as resistance with 132.978 as the closest risk defining level (see blue numbered circles). That level was the swing high going back to June 7. Above that, the swing low from June 9 and the swing low from June 10 at 133.17 and 133.35 respectively are other levels that cannot be broken if the sellers are to remain in control.
