USDJPY moves up to swing area target and backs off. Price stays within swing area.

The USDJPY has been trading within a swing area between 157.66 and 158.86. Looking at the daily chart today, the low price came in just below the low of the swing area and 157.62. The high price reached just above the high of the swing area at 158.86. The swing area is wide but traders are trading the range today. Look for a break, and momentum on the break.

The current price between the levels at 158.24 is trading.

Drilling to the hourly chart below, the price low reached before the jobs report stalled against its 200-hour moving average for the third consecutive test. That increases the level’s importance going-forward. The 200-hour moving average comes in at 157.593.

It would take a move below that moving average to tilt the bias more to the downside. Closer support would be at the 100-hour moving average at 157.986 (blue line on the chart below). Getting a move below that level – and staying below – would be a short-term victory for the sellers.

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