Lots of support int eh 108.33-45 area
The USDJPY fell below the 100 hour moving average at 109.038 and a upward sloping trendline. The combination put sellers more control and the pair just ran down to test the 50% retracement at 108.456 and the 200 day moving average at 108.388. The low for the day just reached 108.415 and quickly bounce back up to 108.70 currently.
Recall last week, the price moved above its 100 and 200 day moving averages near the 108.30 level. That helped to push the technical bias more to the upside and fuel the rally higher into the high on Friday at 109.843.
With the top of the support area holding and the price bouncing, there is a battle going on between resistance above and support below. Traders looking for the sellers to win, would not want to see the price move back above its 100 hour moving average at 109.038. Buyers, in contrast don't want to see the 50%, 200 day moving average, 100 day moving average levels broken on the downside.
Technical weakness and stops being triggered contribute to the fall. Yields have also moved lower with the 30 year giving up gains. The 5 year yield is now down to 3 basis points, the 10 year yield is down to basis points and the 30 year yield is near unchanged after being higher earlier.
