Asian session low at 106.187 broken. Looks to test the 106.00 level
The ADP report and a treasury refunding announcement has weaken the dollar bit. The USDJPY as subsequently moved to a new session low at 106.057.
Looking at the hourly chart, the Asian session saw the pair move below the lows from last week (the low for the week came in at 106.354 last week). The price extended to 106.187 before bouncing back to retest the lows from last week (between 106.354 and 106.440). The corrective high reached 106.428 in the London session before restarting the move to the downside. The next target would be the natural 106.00 level.
With the price moving below the lows from last week - and away from its 100 hour moving average (blue line up at 106.719) - the sellers are in control. It would take a move back above the swing lows from last week in the 106.35 to 106.44 to hurt the bearish bias.
Taking a broader look at the daily chart, the price yesterday moved below its 50% midpoint of the 2020 volatile trading range. That level comes in at 106.695. Bearish. The next target area would be around the 105.73 to 105.91 area. That is home to some swing levels from September 2019 and again in March 2020.