Stay below is the risk for sellers now
The USDJPY has moved below the 200 day MA at 111.70 after the weaker US PPI/claims data today.
Yesterday the MA was broken to the downside on follow thru selling from the BOJ trimming of bond purchases. In the Asia-Pacific session today and into the London session the price corrected higher but stalled near a swing high from yesterday at the 111.875 level (See hourly chart below) and the the broken 38.2% retracement at 111.895 on the daily chart above.
The data today has kicked the pair back lower and traders will now want to see that MA as a ceiling. Stay below bearish. Move above, get out.
On continued weakness, the 111.00 area will be eyed. Not only is it a natural support target being a round number, but the 50% of the move up from the September low comes in at 111.02 (see daily chart above). The low in November 2017 would also be a target. That comes in at 110.836.
