My thoughts on the USDJPY now are:

  • The price is finding resistance against the 50% of the move down today at the 106.337. The high did extend to 106.38. This area will now be eyed as the line in the sand for the day. Stay below, bears in control. Move above, the buyers feel better.
  • The trend line on the bottom seemed to help the push lower.
  • If the price does keep the bearish bias, the 105.43-56 is a target. This is the 50% of the move up from the July low (at 105.56). The 105.43 was the high price from January 2, 2014. This high stayed the high until breaking above in September on the way to 110.07.

Markets are nervous and risk is increased. So trade with less and define your risk. The price is being influenced by many forces including yields, stocks and economics.

USDJPY has been finding sellers near the 50% (within 5 pips). Stay below 106.33-38 and the bias is bearish.

USDJPY has been finding sellers near the 50% (within 5 pips). Stay below 106.33-38 and the bias is bearish.