Awaits stock opening(?)
The USDJPY fell in the Asian session. Technicals and China news sent shares lower and with it the USDJPY.
Technically, the pair moved back below the 100 and 200 hour MAs and ran. The low in the London morning session, stalled near a lower trend line (trend line currently at 107.933).
The last 12-13 hours have seen the price trade in at 108.25 to 107.979 range. The 200 hour MA (green line) comes in at 108.32. The 100 hour MA (blue line comes in at 108.379). Those levels should not be breached if the sellers are to remain in control.
Drilling to the 5-minute chart, the consolidation at the lows has allowed the 100/200 bar MAs to catch up to the price. The 100 bar MA has been broken but sellers have leaned close to the 200 bar MA (green line). Are the sellers making a play against the MA? It seems that way for now. The MA may be a risk defining level for intraday traderss going forward. Stay below, keeps the sellers in charge. Move above and the 200 and 100 hour MA become the targetted levels to get back above...
Stocks are about to open lower. US yields are are still a little lower but off the lows. If both move higher that 200 bar MA will be retested. If a lid remains on each, more downside may be seen as the day progresses.
