The low from Monday reached 106.781. The low from last week is at the 6.629
The USDJPY is trading to a new session lows and in the process is testing the Monday low at 106.781. Going back to June 26, the low then came in at 106.79 before reversing back higher to the highs for June at 108.158.
The move to the downside was helped in the Asian session after the pair stalled against its 200 hour moving average (green line in the chart above currently at 107.289), and falling below its 100 hour moving average (currently at 107.10). The typical clues were there. The "market" went with those clues.
Now with the lower price trend extending to the lows for the week, traders who are short may look to lean against the level on the 1st look, with a stop on a break below. Risk is defined risk. Risk is limited.
Should the trend continues to the downside, the next target comes against a swing low going back to last Friday at 106.705. Below that level, and the lows and highs from June 18, June 24, and July 10 between 106.629 and 106.660 will be targeted.
It'll take a move back above the 107.00 level to start to bother some of the shorts looking for more downside. Looking at the 5 minutes chart, the corrective high reached 106.985. The falling 100 bar moving average on the 5 minutes chart currently comes in at 107.025 and moving lower.That combination should keep a lid on the pair on a rally higher if the trend lower is to continue today.