Will the engines keep the bearish break going?
The USDJPY fell on the back of reports that BOJ sees little need for additional stimulus (CLICK HERE). The pair has been moving up and down - basically going no where. Since September 10, a trend is measured in two consecutive days of up or down days. Yesterday the price moved higher- well a little. Today the price is a little lower (closed at 119.87. ON the daily chart, a lower trend line was broken briefly on Tuesday. I will keep that line in tact. The line currently comes in at 119.42 and this would be a target if the selling can continue today.
Looking at the hourly chart, there have been a number of swing lows/highs before that level. They come in at 119.52-65 (see hourly chart below). The market seems to remember that area and lows today and yesterday both have so far stalled in that area once again. It represents support until broken - and stayed broken. Be aware.
Are there any technical clues that we might follow that might indicate a run at those low support levels is still in the cards?
Looking at the 5 minute chart, keep an eye on the 119.87 area. This was the close from yesterday and is the 50% of the trend move lower when sellers exerted their downward momentum on the pair. To stay more bearish, this area SHOULD hold resistance (see chart below).
