200 hour and 50% at 106.168 to 106.204

Traders continued push lower in the USDJPY and in the process broke below its the support targets defined by the 200 hour moving average of 50% retracement between 106.168 and 106.204 (see earlier post). That area is now close risk for sellers as the trend move lower continues today.

200 hour and 50% at 106.168 to 106.204

The pair has dipped below the 106.00 level but as the 61.8% retracement of the move up from the August 6 low at 105.962 as the next target to get to and through. If the level can be broken - and remain broken - traders will start to eye the 105.70 area as support. That is where lows from August 10 came in (see red numbered circles).