The 100 bar MA on 4- hour chart puts on lid on the rally
The USDJPY has been an innocent bystander as pairs like the EURUSD and GBPUSD loved what they heard from Draghi, then hated what he said after. Such is what happens when liquidity, event and market risk are high.
The USDJPY meanwhile has been stalling against the 100 bar MA on the 4-hour chart for most of the day (see blue step line in the chart above). That line could not be broken, and the price has moved lower to make new session lows. The pair just tested trend line support and is bouncing (trades at 109.466 as I type after bouncing off support at 109.36).
The USDJPY move lower, is in contrast with dollar rises against all the other major currency pairs (EURUSD below 1.1300 now and the GBPUSD is 100 pips off of its peak). So it may start to feel lonely going lower. Volatile markets friends. Be careful.
