The weaker data has also sent the USDJPY tumbling to the downside. The pair fell below the 38.2% of the move up from the July low to the October high and will now look toward the 50% of the same move at the 105.566 as the next major target on the daily chart. The high price going back to the 1st trading day of 2014 comes in not far from that level at the 105.43. This seems like a good place to target for the USDJPY going forward.
The USDJPY is below the 38.2% and the low from yesterday and looks toward the 50% of the move up from July
Looking at the hourly chart below, earlier today sellers showed up against the 100 hour MA. Those traders – who defined and limited risk against the area – got “lucky” (they really made their own luck). The pair is now looking to break below the bottom trend line and continue lower. Key moment for the pair, but the sellers are more in control on the break today.
The pair is indeed breaking as a type…And trades at 105.85 currently. The risk now for shorts is a move back above the broken trend line in the hourly chart below. Sellers remain in control That level comes in at 106.23 currently and moving lower over time.
