A little weaker data tilts the pair lower.
The USDJPY is trading in an up and down trading range today in a narrow 29 pips.
At the highs, the pair has been able t stay below the 38.2% and other swing levels (and a broken trend line) all in the 109.769 to 109.798 area.
On the downside, the 109.45 has been a low yesterday and again today. That area has been a swing level from May 9, May 10 and May 13th as well (see green numbered circles).
The durable goods data is largely influenced by aircraft orders, but the Cap Goods orders nondefense ex air was also weaker at -0.9% with the prior month revised lower (from 1.4% to 0.3%). That has moved stocks a little off highs in pre-market trading (Dow up 88 points now). The US yields are also a smidgen lower as well.
Will we get an extension/break?
The range is narrow, so there is room to roam (the 22 day average range is 59 pips. We are at 29 pips now). Much will depend on the stock flows (and yields). It is Friday too. With US/China and Pres.Trump/Pelosi wars, the weekend risk may lead to some clean up flows.
Watch the extreme levels. There is room to roam.
