The USDJPY has taken yet another step to the downside as the price has now dipped below the 100 hour MA at the 79.71 level. This will now be resistance for the pair. The price has also dipped below the midpoint of the move up from the June 15 low at the 79.609 level. The next target below is the 200 hour MA at the 79.445 level and below that 79.373 (61.8% of the move up from June 15).
The price in the USDJPY on Friday closed just below the key 100 day MA level (blue line in the daily chart above), leaving today’s trade to determine the bullish/bearish bias. When the price opened above the key MA at the 80.46 level today and then failed, it opened the door for sellers to enter with defined risk. Since then, the pair has stepped down in a trend move with each leg on the way, holding below the 38.2% of that leg. This is indicative of the sellers being in control. The current leg down has the Correction Zone (38.2%-50% of the last leg down) between the 79.69-79.73. Stay below, and the sellers will remain in firmly in control of the trend. A move above the 79.73 would take the price above the Correction Zone and the 100 hour MA. This should slow the trend like tendencies of the market (for the time being at least) as buyers and sellers become more balanced.
