Forex technical analysis: USDJPY swings on tricky durable goods headlines

Technical Analysis

Author: Greg Michalowski | usdjpy

Headline good but masked by transports

The Durable goods report was a shocker for the headline but also a shocker for the ex transportation and other measures. Overall, throw out the headline and the business investment side is not good. 

The USDJPY has moved down to test the 100 day MA at 119.28.  The price fell below this level in earlier trading but rebounded with the activity in the dollar. A move below the level again should solicit more selling pressure. The 200 hour MA is at 119.36. The broken 38.2% retracement comes in at 119.48 and the 100 hour moving averages at 119.57. 

The  trading range is narrow for the USDJPY at 51 pips so far today. The average over the last 22 trading days is around 83 pips. So there is room to roam on a break. I would expect the downside to be the most logical given the weakness the data.  The pair may be influenced by the action in the EURUSD which may have a different agenda.  That may, however, be manifest in a weaker EURJPY.  

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