Trades near 61.8% of the move up from October 25th low
As the Nasdaq moves down -225 points or over 3% on the day, the USDJPY is lower on the flight to safety flows that typically accompany a sell off.
Having said that the run to the safety of the JPY fall has slowed. We are not running, but the buyers are not exactly racing in either.
The last 4 hours have traded in a range from 112.58 on the topside, to 112.41 on the downside. A lower trend line on the 5-minute chart above, comes in at the 112.41 level (see green numbered circles). A move below would likely encourage more selling.
Looking at the hourly chart below, the pair is currently testing the 61.8% of the move up from the October 26th low (low not shown) at 112.453. The price is trading above and below that level over the 4-5 hour period. There is some technical support that seems to be slowing the fall.
On a break lower, a lower trend line cuts across at 112.24 currently (and moving lower). That line may attract some profit taking buying on a run.
ON the topside, looking at the 5 minute chart, the topside trend line comes in at 112.52 currently (and moving higher). Getting above that is the absolute minimum for the dip buyers/bulls with the 38.2% at 112.587 another target that would weaken some of the bearish move today.
