USDJPY stays above 100 hour MA, but…

<p>The market still fears the 150.00 level in the USDJPY. There was a run above at the start of the month and a quick 280 PIP move back to the downside. This week, there was a 100 PIP tumble in a minute of trading on another BOJ fear schism. </p><p>Technically, move above the 150.00 level, and the price goes higher. The technical bullishness is enhanced. However, it doesn't come without risk from the central bank either from currency intervention or a surprise policy change that kicks the JPY higher (and the USDJPY lower). </p><p>Having said that, the 100-hour moving average has done a pretty decent job of trying to hold support. That moving average was broken on 3 separate occasions this week. Each break could not last more than an hour. The 100-hour moving average comes in at 149.755 and moving higher. The 200-hour moving average – which is another target to get to and through to increase the bearish bias – comes in at 149.518. </p><p>In the new trading week, getting below each of those is important from a technical perspective for the sellers.</p><p>If I were to characterize liquidity risk, a long position – even though the technical bias is higher – would be greater for buyers. There just is too much liquidity risk from a sharp move lower. </p><p>In this video, I outline the levels in play and the risks. </p>

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