When put into context to the near-term chart below, the quick 30 pip drop earlier isn’t that meaningful. As our reader Alex pointed out, there were some headlines noting that the BOJ is said to see „little need to rush an October rate hike“ and that they are „mulling a change to their view on upside price risks“. But here’s a look at how things are playing out on the hourly chart for the pair:

Sellers did try to wrestle back some momentum earlier in the week but were thwarted in their attempts to push below 149.00. Since then, the 100-hour moving average (red line) has returned back to be a key near-term support level for the pair. And it looks to be doing the job again now amid the drop earlier.

Hold above and buyers will continue to keep a more bullish near-term bias. But break below and sellers will start to come back into the picture again. But just be wary that we are closing in on key resistance points as well the longer price action holds up here.

The 100-day moving average is seen at 150.81 currently and has already made a crossover back under the 200-day moving average as noted here at the time.

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