Tests 100 day MA
Nothing new. The USDJPY is testing the 100 day MA at the 119.34 level. The price has been trading above and below this MA level as the pair remains mired in a non trending range (see hourly chart below).
The move lower has also move below the 100 and 200 moving averages on the 4 hour chart (blue and green lines in the chart above). Those levels come in at the 119.59-61 levels. The price has also breached trend line support at the 119.46 level. These levels are now risk defining levels for shorts to lean against. The price should not trade above those levels. The 119.05 level is the next target. Below that level and the pair will start targeting the lows going back to March 26 (the targets are at 118.92, 118.71, 118.52, 118.48 and the recent low at 118.318).
The traders in the USDJPY are looking toward JPY weakness to rear it's head going forward at some point, but the BOJ is not in a hurry. With the US retail sales getting off to a flat start in the 2Q, this is not good for USD strength either. The Fed may see stronger growth and inflation ahead but the start of the 2Q is not impressing me much.
