A short term chink in the USDJPY bullish armor, but work to do too

The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term has a chink in the bullish trend move armor.

You have to go the 5 minute chart to find it, but for traders it showed a modest win for sellers.

More specifically, the pair moved below the 100 bar MA on the 5 minute chart at 144.43. It also moved below the 38.2 to 50% of the last leg higher today. THat comes between 144.36 to 144.512. The low price reached 144.22.

What now?

Stay below the 144.513 area gives the sellers some comfort in the SHORT TERM. On the downside if the price can move below the 144.22 level, the 200 bar MA at 143.995 would be the next target to get to and through. The price would have to stay below that MA level to give the sellers a little more comfort.

Having said that, the buyers are still in firm control. Looking at the hourly chart, the 38.2% of today's range is at 144.097. The 50% of the day's range is 143.822. Get below those would be the next key targets. Absent that, and are the sellers winning? No.

But in the short term a small win for the sellers on the 5 minute chart.

Helping is that yields are lower in the US. The 10 year is down -6.5 bps.

Also stocks are recovering a bit. The Nasdaq is up 106 points now and looking to snap a 7 day decline.