Looks toward the May low at 105.978
The USDJPY continues to trend lower with the price moving below a swing area going back to end of April early May in the 106.35 to 106.44 area. That area is now a risk level for sellers. Stay below is more bearish
The next target comes in against the May 7 low at 105.978. The natural support at the 106.00 level is also in that area (see 4 hour chart below). .
As outlined yesterday in a post, the USDJPY has been non-trending and non-trending leads to trending. The price action is trending lower today. The range is now 115 pips. The average over the last 22 trading days is 67 pips.
Looking at the hourly chart, the price tried to move above its 200 hour moving average during the Navarro and White House comments on China. However, the price fell back below its 200 hour moving average as New York traders were entering for the day. The fall below the 100 hour moving average (blue line) and topside trend line turned buyers to sellers. The price has been running lower since that break (at 106.88 – 92).
Him
