The USDJPY made new highs in an illiquid move to new highs just before the US Employment report. The subsequent fall on the weaker headline, took the price to the lower trend line outlined in the pre-market report (SEE: Forex Technical Trading: Technical levels for EURUSD and USDJPY pre-US employment ).

USDJPY on the hourly chart held the lower trend line support level on the first move lower.

USDJPY on the hourly chart held the lower trend line support level on the first move lower.

The price pushed higher off that level and is trading in a volatile, choppy action since that time – moving above and below the 50% of the days trading range.

AS the choppiness subsides, look for traders to start defining the risk levels for trading. For me, that will be against the 38.2-50% of the days trading range (see chart below). Stay below and the intraday bias is down. Traders will look for a move below the hourly trend line for the next intraday bearish clue. If the price moves above, the up and down chop continues with the buyers taking back control.

USDJPY chops around, but slowing down.  Look for 38.2-50% to define risk now, with intraday bears in control.

USDJPY chops around, but slowing down. Look for 38.2-50% to define risk now, with intraday bears in control.