USDJPY bounces off 100 bar MA on the 4-hour chart. Can the buyers keep the momentum?

The USD/JPY pair moved lower during the morning U.S. session but found support at the rising 100-bar moving average on the 4-hour chart (see lower blue line on the chart above), where sellers turned into buyers, driving the price higher.

• Current Movement:

  • The price is now testing the falling 100-hour moving average at 154.73.
  • The 200-hour moving average, just above at 154.88, serves as the next key resistance.

• Bullish Outlook:

  • A sustained move above both the 100-hour and 200-hour moving averages would reinforce a bullish bias.
  • Yesterday’s attempt to break above these levels failed, highlighting their importance as resistance points.

• Context:

  • Since late October, price action has fluctuated around the 100-hour and 200-hour moving averages, signaling market indecision.
  • However, the 100-bar moving average on the 4-hour chart has remained a strong support level, with only minor and short-lived breaks on November 5-6 and earlier this week.

• Key Takeaway:

  • The 100-bar moving average on the 4-hour chart remains critical. As long as the price holds above this level, buyers retain control (with the 100/200 hour MAs as other targets to the upside).
  • A break below this support MA at 153.88 with sustained momentum would shift the bias towards bearishness.

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