USDJPY recovers a little as stocks move off lows

Technical Analysis

Author: Greg Michalowski | usdjpy

Corrections underway?

Soon the Nasdaq moved down 3% and the Dow fell over 700 points,  the stocks stalled and we are now seeing a minor rebound.

The Nasdaq is now ONLY down 2.58%. The Dow is down -598 as I type.  Better than nothing.

Gold is back to $1516 (reached $1524).
Crude oil is at $54.59 (reached $53.97).

The 10 year note is at 1.589% after moving to 1.5708% at the low. It is still down -11.4 bps on the day.

All the instruments are still under pressure (or in risk off mode), but they are off extremes.

Corrections underway?
The USDJPY is also recovered a bit. 

Looking at the hourly chart, the pair trades back in between the 100 hour MA below at  105.789 and the 200 hour MA at 106.006. The high on the recent bar just reached to 105.981.  It will take a move (and staying above) the 200 hour MA to more interest in the up side.

What can be said, however, is the NY session had a high of 106.11 and a low of 105.65.  That is not all that bad given the rout in the stocks (Dow high was at -244 points and reached a low of -758 points). The USDJPY decline could have been a lot worse.   Maybe it is the summer season.  Maybe it is the range that the USDJPY is in, gives traders incentive to stay in that range.  What ever it is, relative to other routs in markets, today's move was not that bad.  

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