The JPY pairs are moving lower as London traders exit for the day.
The USDJPY is trading to a new session low at 109.182. The the pair started the New York session just below its 100 day moving average at 109.574, and has been able to stay below that moving average level. The momentum to the downside increased as ISM data came out weaker than expected. THe price move below the swing low from July 20 at 109.326. The next target comes in at the low from July at 109.060. Close risk now intraday is the low from Friday's trade at 109.354. Stay below keeps the bears fully in control.
The GBPJPY is trading to a new session low and in the process is testing its 38.2% retracement of the move up from the July 20 low. That level comes in at 151.53. It is also testing the swing low from July 27 at 151.56. Earlier today, the price toyed with the 200 hour moving average (green line). Over three hourly bars the price traded above and below the level but sellers have piled in over the last few hours with the help of lower US rates, lower oil prices and the US stocks giving up gains. That has led to risk off flows which hurts pairs like the GBPJPY.
The next targets come in at swing lows from July 26 at 151.38 and July 22 at 151.24. THe 50% retracement of the move up from the July 20 low comes in at 150.943.
The 200 hour MA has been left in the dust but it remains a risk defining level for the sellers at 152.175.
The EURJPY has also broken below the 100 and 200 hour moving averages over the last few hours and that has led to a sharp decline. For the EURJPY, the pair tried to hold support against the 200 hour moving average (green line), but cracked with the moves lower in the JPY pairs, and has raced lower over the last few hours. The prices now approaching the 50% midpoint of the move up from the July 20 low. That level comes in at 129.57. The swing low from July 27 comes in at 129.536. Breaking below each should open the door for further downside momentum.