The USDJPY has resumed its downward momentum following the much weaker than expected ISM nonmanufacturing Index which tumbled to 49.6 from 56.5 last month. The expectations was for 55.0. Employment, and new orders both moved below the 50 level. Prices paid decreased to 67.6 from 70.0.
Looking at the hourly chart of the USDJPY, the high price today - right before the US jobs report - extended above a key swing area between 134.49 and 134.65 (see red numbered circles) The wage data from the jobs report pushed the price sharply to the downside, negating that break.
The price off the initial low rebounded back above the 50% midpoint of the range since the December 15 high at 133.832, but once again the data came to the rescue for the sellers, and has pushed the price of the USDJPY to new lows.
The low price has reached now 132.619 and looks toward the rising 200 are moving average 132.374 as the next target. The 100 hour MA at 131.855 would be another key target to get to and through to increase the bearish bias from a technical perspective.
Finally, the 50% midpoint of the 2022 trading range comes in at 132.70.
