USDJPY dips as stocks dip
Down on the day now
The USDJPY dipped lower in an down, up and down day. You might be able to blame swings in stocks. The Dow is down, the S&P is unchanged and the Nasdaq is marginally higher (but did dip into the red at the lows today).
For the USDJPY, the pairs high could not reach a swing area in the 108.84-887 area. The high stalled at 108.83, just short of the lower swing area extreme (see yellow area in the chart above)..
The recent run lower as US stocks lost ground (and yields also ticked lower), has seen the 61.8% retracement at 108.56 and a lower trendline at 108.50 stall the fall. The low reached 108.55 and we currently trade at 108.58.
A move below the lower trend line should solicit more selling with the low for the day at 108.45 the next target to get to and through. Below that opens the door for a potential run toward the low from last week at 108.224.
Much of the price action today will likely rely on the movements in the stock market. Retail stocks with Kohls down a whooping -17.3% and Home Depot down -5.25% it makes you question the consumers strength a little bit..