The pair tumble lower today stalled near the 50% retracement
The USDJPY trades near a swing area between 105.167 and 105.257
Admittedly, the price has traded above and below that area in the volatile trading today. However, sans the spike on the employment report, the price has stayed below the high of that swing area at 105.257. We currently trade at 105.17 as I type.
In the aftermath of the announcement of Pres. Trump's positive Covid reading, the USDJPY tumbled down toward its 50% retracement of the range since September 21 low. The low for the day reached 104.936. The 50% retracement comes in at 104.896.
Technically speaking, stay below the 105.257 area keeps the sellers firmly in control. A move back below 105.167 and perhaps the 38.2% retracement at 105.109, gives sellers more confidence with the 50% the next key target.
Move back above the 105.257 level and then the underside of the broken trend line at 105.31 would have traders looking toward the 200 hour moving average (green line) currently at 105.391.
Needless to say lots of balls in the air. The stocks have moved more to the downside since the employment report. The NASDAQ futures are down -282 points. The S&P index is down around 58 points currently.
