The USDJPY is doing it’s laps down and up and down. The pair moved lower before the release, made new lows after the number, raced higher on the revision reaction but found sellers against the 38.2% of the move down from the April 25th high to the low on Monday. That level came in at 80.415 (see chart above). The high on the correction reached 80.38.
The price is now back down and is below the 100 hour MA at the 80.11 level. This gives me a bearish bias for the pair. Adding to the bearish slant is the price is also below the 100 and 200 bar MA on the 5 minute chart. That level comes in at 80.18.
If the price can remain below both this area (80.11/18), the sellers could start to take control. A move above the 80.18 level and the technical waters muddy once again.
The market has to decide is the number weak enough to worry the Fed/lower the dollar or the porridge not too hot/not too cold but just right (or at least just right until the next series of numbers?)
