Two MAs are near converged at 111.25 area.
The USDJPY moved lower as "risk off" sentiment led to a move into the "relative safety of the JPY".
That move to the downside has seen the price decline over the last seven trading hours, and make its way back toward the near converged 100 and 200 hour moving averages (blue and green lines in the chart above) at 111.25 area.
The low for the day just reached 111.271, and has bounced up modestly. Also near the level is swing highs from Friday, Monday, and Tuesday before the break higher.
What next?
Focus will be on stocks and perhaps news out of Washington in regard to the debt/budget talks.
Technically, traders will take a clues from the converged moving averages. Dip buyers/profit takers did come in against those levels on the first look. A break below, however, should solicit more selling with 111.11 as a target along with the 38.2% retracement of the move up from the September 22 low at 110.943. The low for the week on Monday stalled near a swing area between 110.771 and 110.809. If selling momentum increases, that level would be a another key barometer for both the buyers and sellers.
On the topside a rebound off the 100 and 200 hour moving averages has the swing area between 111.63 and 111.703 as a swing area to get above. Earlier today, that area was broken but could not sustain momentum toward the highs at 112.074.
