USDJPY moves lower after PPI data. Sellers in control.

The US PPI data was more or less as expected. It did not change any projections for Fed policy decision next week which is centered on a 25 basis point cut.

Nevertheless, the USDJPY has been moving back to the downside. Helping the bias is the inability to stay above its 100-hour moving average at 142.58. In the Asian and European session, the price moved back above that moving average but could not keep the momentum going. Falling back below that moving average, as disappointed they buyers and is leading to a run back toward the early August low at 141.678, and other low levels from early September up to 141.942.

Getting below that level would have traders looking toward the low price from early January (the first trading day of the year) at 140.807. Yesterday, the price moved to – and through – that level to a new low for the year at 140.702. That level will also be a downside target going forward.

A move back above the 100-hour moving average at 142.58 is now needed to tilt the bias back to the upside. Sellers remain more in control.

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