In the kickstart video, I outlined how if the USDJPY continued to move higher, the 100 hour MA needs to hold resistance.
Looking at the price action on Friday and again today, the ups and downs ignored the MA line. Today’s break lower, did find more selling momentum. Sellers made a stronger play.
Now with the price rebounding back to the MA, it is time for the sellers to show they want and will keep control. The only way to do that is to sell against the MA line and push the price lower. If the sellers are successful in overwhelming the buyers, look for a rotation back toward the lows of the day (over time)
Conversely, if the sellers fail and the price moves back above the 100-hour MA, I would expect sellers to turn to buyers (on the disappointment – stops) and the price to instead move higher and back toward the 38.2% at 157.880.
So key moment for the sellers to show their strength. Will they prevail and stop the rebound back higher.
