Continues the move to the downside today.
The USDJPY has continued its moved to the downside and in the process has traded to the lowest level since August 6.
Technically, the pair has moved below the 38.2% retracement of the move up from the July 31 low at 105.95 and more recently the 50% retracement of that same move higher at 105.612.
The pair trades between a channel trendline with a low targeting 105.225. The high trendline comes in currently at 105.612. Both of those lines are moving lower.
The current price trades between those levels at 105.44 as I type.
A move back above the 50% and topside channel line would muddy the waters for the downward trend. We could see some short covering with a move above 105.70 as the next close target on further upside momentum.
On the downside, there is also swing level support between 105.271 and 105.314 (see yellow area and red numbered circles). That level is defined by swing highs from July 30 and swing lows from August 5 and August 6. A move below that area would next have the lower trend line to contend with before the door opens for further downside probing.
