The flight into the safety of the JPY is continuing with the USDJPY moving lower as stocks keep most of their declines.
Looking at the hourly chart, the USDJPY tried to extend above a swing area going back to November 28 between 137.48 and 137.85 and the 50% of the range since November 21 during trading yesterday, but failed. It was about USD buying yesterday despite stock declines. Today the focus seems to be more on the "risk off" flows (flight to safety of the JPY). That is the story I am telling at least (yields are higher after all).
Technical are also in play on the move below the swing area.
On the downside, the 100/200 hour MA are now being tested which will test the sellers intentions. Move below, and the bias shifts more to the downside for the pair technically. Hold and the buyers are still in play and the battle with the sellers from above near the upper swing area.
Looking at the stocks:
- Dow Industrial Average is down 387.2-1.17% at 32817.41
- S&P index is down -52 points or -1.32% at 3845
- NASDAQ index is down -127 points or -1.17% at 10684.40
