Losing momentum. Markit comes out weaker.
The USDJPY is backing off (moving lower). The Markit PMI for Manufacturing just came out and it is the lowest since September. That is not helping. Stocks are wandering back down. The Nasdaq is in the red now (down -11 points or -0.14%). The S&P and Dow are still higher but off their highs (energy doing well on the higher oil).
Technically for the USDJPY, the pair moved up to test the 200 day MA at 110.216 (see green line in the chart above). The high reached 110.212. So sellers leaned against that level and are being rewarded (the price is testing 110.00 area currently).
Drilling to the hourly chart below, the pair has a support target at the 109.87 -97. The 100 bar MA on the 4 hour comes in at 109.972 and the 200 bar MA comes in at 109.911. A lower trend line cuts across at 109.86 currently. The low for the day reached 109.82 in the Asian session. This swing low just extended to 109.984.
If the pair is to continue lower, there are a lot of levels to get below on the hourly chart which could make the going tough. But if each level can be broken (and the price get below the 109.82 low for the day), it gets more ugly technically.
On the topside, buyers/longs need to see the price get back above the 100 hour MA at 110.18 (50% at the same level), the 200 day MA at 110.216. Not far from that is the 200 hour MA at 110.29.
Honestly, on reflection, there is a lot of technical stuff below and there is a lot of technical stuff above....Call the range 109.82 to 110.29.
