Abe advisor Hamada's comments sends the pair lower
The comment is out. Whether you believe it or not, the price decline, sent the USDJPY pair quickly lower. In the process, the price fell below the 100 hour moving average (blue line in the chart below). That level currently comes in at 120.235. The low extended down to the 200 hour moving average (green line in the chart below) That level currently comes in at 119.85.
So the pair is now trading between the "goal posts" defined by the 100 and 200 hour moving averages. The price has moved up to retest the 100 hour moving average. So far, traders have been able to keep a lid on it (the high corrective price has come in at 1.2025). Stay below and the 200 hour MA may be tested again. Not far below that is the 50% retracement of the April range. That comes in at 119.77. A break below would likely lead to further downside momentum.
