Concerns about risk pressures the pair.
The USDJPY can be a barometer for risk. If risk fears are increased, the price tends to go lower. That is the case today for the pair.
Looking at the hourly chart above, the price is trading near the lows ahead of the US stock opening at the bottom of the hour.
Earlier in the day, the pair fell below its 100 hour MA (blue line) and upward sloping trend line (see green circled numbers). That move tilted the bias more to the downside and is now a risk area for traders today. Those levels comes in at the 110.19-20 area. Stay below today is more bearish. Move above and the technical waters get a lttle muddy for the pair.
On the downside, the price is testing the
- 38.2% at 110.035,
- a lower channel trend line,
- a swing area between 110.02-057 and
- the 110.00 level.
Move below that cluster of support, and the 200 hour MA at 109.889 and the 50% retracement at 109.84 become the next hurdles for the sellers to target and get below.
