USDJPY moves below swing area as selling continues

The selling momentum is continuing in the USDJPY .

The pair just moved below a swing area on the hourly chart between 132.24 and 132.479. The low price just reached 132.02. Close risk will now be up to 132.479. Stay below is more bearish.

On the downside, the door opens for a potential run toward the its 100 day moving average. That level comes in at 131.122. Recall back on August 2, the price low stalled just ahead of that moving average level, leading to the corrective run up to. 135.57 on Monday.

After over 2 days of sideways price action, the non-trending market in the USDJPY was ready to run. Needless to say the shove from the CPI was a huge contributor to the big price action.

The range for the day is up to 328 pips. The average over the last 22 days is around 160 pips (inclusive of today's range). Recall from yesterday the range was only 54 pips for the day.

Contributing to the sharp move to the downside is lower yields. A snapshot of the US yield curve shows:

  • 2 year 3.113%, -16.1 basis point
  • 5 year 2.84% -12.3 basis points
  • 10 year 2.726%, -5.7 basis points
  • 30 year 2.994%, unchanged on the day

The US treasury will auction off 10 year notes at 1 PM ET today

US stocks are off there high levels, but maintain strong gains:

  • Dow industrial average up 505 points or 1.54%
  • S&P index up 72 points or +1.76%
  • NASDAQ index up 282 points or +2.26%
  • Russell 2042.81 points or +2.24%

See earlier VIDEO post by clicking here.