USDJPY makes a break for it
The USDJPY has been sent tumbling lower after the much weaker than expected US employment report. Traders looking for that confirmation from the jobs report to sway the fed to tightening, certainly do not get it. If the FOMC was looking for improvements in labor market conditions and in the economy, this is not going in that direction.
Technically the USDJPY has broken below trend line support at 119.409. This now should be a risk, defining level for traders. Look for sellers against this level. The move lower took the price to a low price of 1.18932. There is a bunch of lows going back to February that come in between 118.22 and 118.50. This is the next major target for the pair. Below that the 38.2% of the move up from the October low comes in at 117.957.
The pair has been confined in an increasingly more narrow trading range. Today's move has taken out step 1 of a break and run (the trend line). That level now becomes a line in the sand for sellers. The price should not trade above that level. The momentum - over time - should continue to the next key targets.