New 2017 low made
The USDJPY fell below the 108.63 level and that turned the dip buyers to sellers. The price was pushed lower, taking out the August low at 108.24 and even the April 17 low at 108.12. The price dipped to 108.039. That is the lowest level since November 2016. We currently trade at 108.20. The fear now is did it go too far today?
The range for the day is up to 122 pips. The average is 92 pips. The range is extended but trends are fast directional and can go farther than you think.
Sellers will still want to see the 108.12 April low rebroken and then the natural 108.00 level also broken. Those are the targets now.
What would sellers not want to see?
The 38.2% of the NY session tumble comes in at 108.392. The 50% at 108.50 (see yellow area in the chart below). A move above those levels would muddy the water. If you want a more conservative line in the sand, use the 108.63 area. That has been a key floor area. It is now a ceiling. There have been looks below the 108.63 level on August 29th and again yesterday. Those breaks failed. If this break if "for real", the market should move away from that level and at the very least, stay below that level.
We are currently trading right around the 108.12 level again. Key test for the intraday traders.
