US yields moving lower.
The USDJPY is moving to new low after the softer US data. Bond yields are also moving lower with the 10 year yield down -3.3 bp (was down -0.8 bps before the releases).
Technically, the price moved to below the low from yesterday at 113.45. The low reached 113.349. In the process, the pair fell back below the 38.2% of the move up from the May 5th low. That comes in at 113.495. We trade around that retracement line now. There is other support targets at 113.22, trend line at 113.165 and the 200 hour MA at 113.088. The price has not traded below the 200 hour MA since and April 21st. The 100 day is at 112.998. On Monday, the price moved above the 100 day MA and stayed above it on Tuesday.
The pair is heading back lower but there is some key support levels looming. The 200 hour MA and that 100 day MA stick out and that area should provide some pretty good support on a dip. Nevertheless, there is some room, if the bears can keep a lid near the 38.2% area.
