USDJPY lower on the day and looks toward trend line support

Technical Analysis

Author: Greg Michalowski | usdjpy

USDJPY trades to another new low going back to January 3 flash crash.

The USDJPY is lower on the day, and tradingin the lower half of its day trading range.  

USDJPY trades to another new low going back to January 3 flash crash.
The pair made a new "lowest low" since the flash crash on January 3rd (take out that low and the price today reached the lowest low since April 2018). Looking at the daily chart, a lower trend line comes in at 106.657 (the low today reached 106.773 - close but not exactly a strong test), On more weakness, traders will be eyeing that level for potential support buyers. On a break, it opens the downsdie for more downside momentum.

Drilling to the hourly chart below, the moved lower today was helped by breaking below a floor from yesterday's trading at the 107.25 area. After that was broken, the buyers turned to sellers adn the price stepped lower.   The high price today (see red circle 3) stalled at a topside trend line. That too helped the bearish bias.  That trend line comes in at  107.19 (and moving lower each hour).  The corrective high off the low reached 107.144.  We currently trade at 107.88.    

A closer risk level for sellers now may be at the 107.05 area. That was the lows from last Friday.  The price has traded above and below the level, but the recent bar is making another run at the lows. Is it time to move away now?  It is also just above the natural 107.00 level.  

USDJPY on the hourly chart looks to stay below 107.00-107.05 now
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