Fall in USDJPY as global growth concerns and flight to safety flows (?) lead pair lower
The Afghanistan developments over the weekend (flight to safety of the JPY) have helped to push the USDJPY lower along with concerns about global to growth (lower stocks), and lower yields.
The pair is reaching a new session low as I type and enters into a swing area between 109.18 and 109.232. A move below this level have traders looking toward the August lows with targets at 108.867-108.922 and the August 4 low at 108.715.
Recall on Friday, the price fell sharply after the much weaker than expected Michigan consumer sentiment. That moves all the pair rates below its 200 hour moving average (green line currently at 110.059) and the 50% midpoint of the August trading range at 109.756. By the close, the price had also fallen below its 100 day moving average at 109.665 (and closes below that level – bearish).
In early Asian session today, the price did squeeze above that moving average level briefly, but stayed below the 50% midpoint of the August trading range at 109.756. The subsequent fall back below the 100 day moving average saw buyers turn to sellers, and the price has traded lower since that time.
Sellers remain in control.
