Weaker US data has USDJPY back on the defensive

The weaker Empire Manufacturing and CPI has the USDJPY down testing support at the 38.2% and the low from late yesterday’s correction. The pair is finding some support buying against the level on the first test but there should be more selling if the level is breached.

The USDJPY rise to the high today fell short of the 200 day MA at 79.17 (the high reached only at 79.04). This could disappoint the longs once again who were hoping for that break higher. Looking at the 5 minute chart above, the underside of the broken trend line in the chart above comes in at 78.80. The 200 hour MA comes in at 78.84. This will now be resistance on corrections today. A move below the 78.67 will look toward the 78.596 and the 78.492.