USDJPY retraces the earlier day's declines. What next?

<p>The USDJPY moved lower after the Bank of Japan interest rate decision (no change) and statement/press conference. However, although the price was able to break below its key 100-day moving average at 147.557 and 61.8% retracement at 147.45, the price did find early buyers against its rising 200-day moving average (green line in the chart below). That level comes in 147.002 currently.</p><p>The subsequent move back to the upside has now retraced the entire move lower, taking the price back into a swing area between 148.45 and 148.59 that swing area is ahead of the extreme from last week's trading at 148.802. Getting above those levels opens the door for further upside.</p><p>In the video I also take a look at the daily chart. The last four days have seen the price close above it 100-day moving average. The break back below that moving average today threatened the upside momentum.</p><p> However, getting back above that moving average level gives the buyers new hope, and opens a door for a potential move toward the high from November 2023 at 151.909, and the high from October 2022 just three or four pips higher at 151.945. There is still a lot of room to get to that target, but staying above the 100-day moving average would keep that bias hope alive.</p>

This article was written by Greg Michalowski at www.forexlive.com.