Swing area also tested
The USDJPY has rebounded off the lows, but still has some overhead technical resistance in the way.
Looking at the hourly chart, the price earlier today fell below the 100 day moving average, 200 hour moving average and 100 hour moving average at 109.845, 109.824 and 109.651 respectively. The low price reached 109.425 which was within a lower swing area between 109.407 and 109.479.
The subsequent snapback move to the upside has taken the price back up and has seen a retest of the 100 hour moving average at 109.651. A swing area between 109.564 and 109.615 is also in play.
What now?
Traders will be watching the swing area at 109.564 and 109.615 for clues. Move below, and the bears are feeling more confident/ the buyers our nervous. Traders within re-eye the swing area between 109.407 and 109.479.
The NASDAQ index is the NASDAQ index is making a new session low at -309 points or -2.05% at 14735. The Dow industrial average is down 540 points or -1.56%. The S&P index is down -73.5 points or -1.65%. That should favor a lower USDJPY.