100 and 200 hour MAs revisited.

The USDJPY is trading lower today and in the process has moved back to the 100 and 200 hour MAs (blue and green lines). The 100 hour MA is at 111.405. The 200 hour MA is at 111.256. The price trades around 111.36 currently. The 50% of the move up from last week's low is also at 111.36. The MAs and 50% do represent a potential support/risk defining area. Buyers may stick a toe in the water as a result, but a break below would likely lead to stops being triggered.

One drag is stock futures are implying a lower opening. European and Asia stocks also are falling/fell on the never ending trade concerns. That can have a negative effect on the JPY pair.

In the US:

  • S&P futures imply a -16.6 losss
  • Nasdaq futures imply a -55.3 loss
  • Dow futures imply a -175 point loss

Yields are also lower this morning which tends to weaken the USDJPY

  • 2 year is down -1 bps
  • 10 year is down -2 bps
  • 30 year is down -1.3 bps