Forex technical analysis: USDJPY breaks to new session lows

Technical Analysis

Author: Greg Michalowski | forex

Moves below support at 111.21-245

The 50% of the move up from the April 17th low comes in at the 111.245. The 200 bar MA on the 4-hour chart comes in at 111.21 currently.  The price has been dipping below those two levels in trading today, but there has not been much momentum.  Looking at the hourly chart below, there were two hourly or closes below the level in the Asia-Pacific session, but zero in the European session.  The price is breaking now. Stay/close below is more bearish. 

Yields in the US area trading near unchanged levels but more toward the low yields of the day (but only in 2 bp range so far).  US stocks are expected to open with gains. The S&P futures are trading up 5.25 points and the Nasdaq futures are up 21.5 points.  Typically, a stock decline leads to lower USDJPY.  I would say, the USDJPY is going off on its own, which is ok.   Who knows, maybe it knows something?  

Regardless, technicals are more negative/bearish below the two levels.