USD/JPY buyers undo their efforts from trading yesterday

After breaking above the 100-hour moving average (red line) in European trading yesterday, buyers tried to take a look above 151.00 for a while. That didn’t last as the dollar sagged following a softer ISM services report here. But still, USD/JPY buyers managed a defense of the key near-term level above coming into today.

That saw price action keep around 150.20 to 150.50 before BOJ dove Nakamura came out to try and vindicate his monetary policy stance. He mentioned that while he is perceived as a dove, it doesn’t mean that he is opposed to rate hikes. And what timing with the December decision just two weeks away.

It’s still not a given that there will be a rate hike in December. But it is enough to shake buyers as they falter on a second test of the 100-hour moving average as seen above. Keep below the key level at 150.01 and sellers will hold near-term control for now.

On the week itself, we’re pretty much back to square one for USD/JPY. The pair is virtually flat now on the week and that pretty much sums up the push and pull as traders await the main event tomorrow i.e. US non-farm payrolls as the deciding factor.

This article was written by Justin Low at www.forexlive.com.