Falls below 200 hour MA
The USDJPY moved to new session lows after the comments from Dudley, but the price has bounced back. The move took the price back below the 200 hour MA and also below a trend line from most recent swing lows in the pair.
The correction off the low is so far staying below the 100 hour MA at 119.375. It is a close clue for the bulls and bears (see 5 minute chart below). Stay below and the sellers feel better. Move above and the selling may not be over - getting and staying above 119.50 will be eyed but the sellers lose some of their mojo.
Overall fundamentally, the BOJ has recently eased, and Dudleys comments are a shot across the bow, the employment picture remains bright in the US.
The next downside support target comes in at 118.82 (50% of the move up from Jan 20 low).
