Sells off to new lows
With the stocks moving lower and yields also under presssure (US 10 year is down 4.1 bps today), the USDJPY is getting that bearish feeling.
The pair just moved to new session lows after a test (small break) of the 100 hour MA (blue line) failed. Yesterday the 100 hour MA was broken and then tested.
What next?
Sellers are in control with the 38.2% of the move up from last week's lows at 111.45 the next target. The 100 day MA, 200 day MA and 200 hour MA alll come in at 111.358-388 area. Key area for the bulls and bears. There should be some stall neart the cluster of MAs on a test.
The new lows have extended the week's trading range to 58 pips now. That is still a low trading range for a week. Remember a few weeks ago the lowest range since January 2012 was reached at 52 pips. A 58 pip range is not all that hot either. There is room to roam.
With the 100 hour MA holding (for the most part), the sellers have the upper hand (below that level)
