USDJPY falls back toward broken trend line after Waller comments

The USD run up got a further reprieve after Fed's Waller eased on the tightening by 100 basis point hike chatter.

The price of the USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term reacted to the downside, falling to a new North American session low. However, the dip did hold support at the broken trend line on the hourly chart at the 138.67 level. The price is back up at 138.92 currently.

What now?

The price of the pair is still up, and support held against the broken trend line. The sellers may have held off additional buying at the session highs on the hourly chart at 139.38 (double top). However, the good news is:

• Stocks are off the lows and near session highs, but are still lower on the day.
• Gold is off its lows below $1700 at $1697.70 and is back above the $1700 to $1710.
• Crude oil is off the $90.58 low and trades at $94.25. The high reached $96.97
• The EURUSD is back above parity and tested the London high at 1.0050 but still remains below the falling 100 hour MA at 1.00639.
• The GBPUSD is back above the low from Tuesday at 1.18066.

There was a easing of the pressure and in some instruments and currency pairs there is even a victory technically on the rebounds, but for the USDJPY, the correction held support and bounced. The pair is still near the highest levels since 1998. The buyers are still in control. Get below the broken trend line on the hourly chart, and sellers have a victory in the win column, but until then the buyers are still in control.