Trend line and 100 hour MA are topside stall points
The USDJPY stalled a topside trend line at the end of yesterday. That trend line comes in at 110.83. Just below that level is the 100 hour MA at 110.791. The price over the last few days has traded above and below that MA over the last few days, but momentum has slowed at the trend line. The two technical levels are getting closer together.
On the downside, this week has a number of lows in the 110.12-264 area. The low just reached 110.216. We trade a little higher now. Dip buyers are sticking a toe in the water against the area over the last 3 or so hours but the upside has been limited so far. I would expect stops on a break below the 110.124 area today.
Taking a broader look at the daily chart, the highs this week stalled right around the low from October (bearish). The price has also traded above and below the 200 day MA. We trade below that MA now at 110.985 (the high today came in at 111.00 - bearish). The price is also now below the September low at 110.374 (bearish). All that is tipping the scale to the downside. Sellers are in control. A move below the floor would look toward the August low at 109.752 and the 50% retracement of the 2018 range at 109.572.
