New day lows being made
The NY traders have continued to take the USDJPY lower and the pair is testing the next technical target. The level is defined by the swing low from August 2nd, the August 24 and August 25 highs (at 100.61-68). The low is 100.60 so far.
This is a level that should give traders a cause for pause (there may be some profit taking). However, on a break, I would expect more probing to the downside. We'll see if the buyers show up. Even if they do, the upside should be limited. The reactionary low from the initial move lower stopped at 100.98. That would be a level traders might look to lean against on a correction back higher.
