US stocks join the European declines
It is still early but the S&P is projected to fall 20 points. European stocks are on the slide as well with the German Dax down -1.20% The French CAC is down 1.16% (they are off the lows).
As a result the JPY has found a "flight into relative safety of the JPY" bid in trading today.
Looking at the 4 hour chart, the USDJPY slid down toward the high ceiling area from end of December/early January. Those highs came at 120.73-812. The low today has bottomed at 120.905. This level should be support. Needless to say, it will likely be dependent on the stocks which are showing a little rebound in Europe at the moment.
The 5 minute chart first saw a move below the 100 bar MA (blue line in the chart below), then tumbled below the trend line and 200 bar MA (green line in the chart below). The price is correcting currently and is testing overhead resistance against the 121.32 to 121.449 area. This is the 38.2% – 50% retracement of the tumble lower. If the sellers are to remain in control, they should come in against this area on a correction higher.
Much may be dependent on how the stock market reacts today. We are getting a rebound currently which is leading to a corrective move higher in the USDJPY. However, overhead resistance is being approached and the US stock market has yet to open. Eyeing resistance above with a keen eye on equities.