Moves away from lowest close level since September 7th
The USDJPY is trading at new lows for the day and in the process is moving away from the lowest closing level since September 7th. Yesterday, the pair tried to do the same thing, but could not sustain the downside momentum. Today the move is deeper. The low for October came in at 118.67. The low for September came in at 118.51. The low in August tumbled to 116.09.
Japan's Amari (Fin. Minister) said last night it was too early to talk about new stimulus. Having said that Japan lowered its economic forecasts. The US economic situation is taking control currently with weaker numbers pointing toward lower 3rd quarter GDP and the expectations that the Fed is no closer to "liftoff" despite the rhetoric.
PS on the topside the 200 day MA (green line in the chart above), remains a key topside level that needs to ultimately be broken (in addition to the 120.60 level). That level comes in at 120.88. The price has not closed above this MA since August 31.
