The USDJPY has broken below its 100 hour moving average with more momentum, and has moved down to test day swing area between 12860 and 128.738. The current price is between those levels at 128.68. A break below the level should lead to further downside momentum as the price moves into the lower extreme area from last week's trading. That area extended down to the low price 127.508.
Holding the level, and traders will look back toward the 100 hour moving average at 129.064.
Recall from yesterday, the price moved above the 100 hour moving average and held that moving average during the early European session before rotating to the upside and moving up to test its 200 hour moving average (see post "USDJPY moved up to test its 200 hour moving average. Finds seller on first test").
Sellers leaned against the 200 hour moving average and pushed the price back toward the 100 hour moving average before bouncing into the close toward the 129.425 level (50% of the May trading range).
SUMMARY: Sellers are making a play, and getting below the 128.60 level would be a more bearish play. Conversely, if the dip buyers against the swing area can hold, then the pattern has traders playing the ranges with the 100 hour MA above and the swing area below.
