100 day MA at 108.178. 50% retracement at 107.995
The USDJPY is down testing its 100 day MA at 108.178. That low has extended to 108.11 but the price action is trying to stall around the key level. On more selling, the 50% of the move up from the March 2018 low is at 107.995. That should also be a level where selling should pause (with stops below).
Looking at the hourly chart, the price fell below a trend line at 108.40. That trend line held earlier today on the first tumble. We have now broken below that line and it is now a close risk level for shorts looking for more momentum lower.
You can't talk about the USDJPY without talking about the yields and stocks:
- The 10 year is now down -16.6 bps to 2.763%
- The S&P is down -1.58% at 2678. The index opened below the 100 day MA at 2710, corrected up to that level, and fell from there. That was the technical catalyst for more selling today. The S&P index is looking to target the 50 day MA 2672.17. The 200 day MA ais down at 2635.23.
The fall in the USDJPY also has pushed the price of the GBPJPY back down to retest its 100 week MA at 143.21. Earlier the low reached 143.19. The low just reached 143.20 and bounced modestly. It is trading at 143.34 currently.
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