Tests trend line support
The USDJPY has moved 142 pips in in the first 4 hours and 15 minutes of the trading day. That is equal to the 22 day ATR for the pair. The week is off to a smoking start and it for the most part all to the downside. In fact the close from Friday at 113.20 is well below the high from the new trading day at 112.96.
The price has move below the 100 hour MA in the process at the 112.18 level. The pair has not traded below that MA since November 9th. That will be a topside resistance level now.
The pair has also moved below the 38.2% of the move up from the November 17th low. That comes in at 111.846.
We are approaching a trend line support line at the 111.496 level. The low has reached 111.54 so far.
With the trend line and the pair reaching the 22 day ATR, it may be time for a little break in the selling. However, the tide at the beginning of the week is a bit more negative
Looking at the daily chart, the 111.444 level was the high from May 30th. That too may give sellers a bit pause for cause at least for some profit takiing. However, we have to be cognizant of potential trend. So I would expects stops on a break below.
The 10 year US note yield has move to 2.324 vs a close of 2.3700 on Friday. That is helping to push the dollar lower.