Forex technical analysis: USDJPY tests trend line in up and down day

Technical Analysis

Author: Greg Michalowski | usdjpy

Old Trend line at 112.62.  Sellers are trying to push below the line.

The USDJPY tumbled in trading yesterday after the market perceived the Fed to be more dovish given their inflation outlook.  The price fell below a lower trend line in the process, but bounced back. 


Today, the price has been waffling higher and lower. The better than expected retail sales today led to a little bump up but honestly, the pair has done little in trading today. The range is only 35 pips. 

The pair is currently testing....well now moving below the old trend line.  Of course, if I re-draw the "new" trend line it comes in at 112.54. It too will need to be broken.   We trade around those level.  Do the buyers come in?

The yields are higher today with the 10 year up to 2.374% up 3.2 bp
Stocks are opening with gains. The S&P and Dow made new highs again yesterday.  Any close higher is a new record.  
Those dynamics usually support the USDJPY.  
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