USDJPY fell sharply during the Asian session after falling below a swing zone at 154.778 and 154.878. The decline saw the price move towards and through another target zone near 153.99 (let’s call it 154.00).
The price low extended as high as 153.595 before beginning its upward rebound. This rebound saw the price initially move towards the low of the aforementioned swing zone, near 154.77 and 154.878. Buyers then took the price with more momentum.
The latter and bring the price back above eight 200 hours by breaking out of 155.38 and through the 50% move lower this week (to 155.173). These two levels now constitute close barometers for both buyers and sellers. Moving below 155.17 would be more bearish in the near term. Going above 200 hours and exiting at 155.38 would be more bullish.
At the top, the 100-day moving average stands at 155.721. This would be a goal to achieve and to achieve with more momentum.
A move below 155.17 would prompt traders to look towards the swing zone near 154.80.
The battle lines are drawn.
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