200 day MA and 50% retracement are resistance above
The USDJPY on the daily chart, fell below its 200 day MA and 50% retracement at 108.38 and 108.329 respectively on Friday and closed below those levels. Bearish.
In trading today, after moving to a new session low in the Asian session that saw the pair test the 61.8% of the move up from the August 2019 low at 107.41, the price did move back higher and above the 50% and 200 day MA levels to 108.578. However, the price backed off the levels and trades closer to the lows than the highs. We currently trade at 107.78.
Drilling to the hourly chart, the run back above the 200 day MA today (see overlay on the chart at 108.38), lasted for parts of 2 hourly bars (one closed above). The price also moved above a broken channel trend line near the area, only to fail. If the selling is to continue, the 61.8% at 107.41 (from the daily) followed by the low for the day at 107.35 are the next targets.
The US stocks are looking to open higher now after a volatile overnight session in the futures. That typically is good for the USDJPY. The not so good is yields are lower as the market anticipates a reaction from the Fed (to calm the market fears and potential slowing of economic activity). So there is some counterbalancing forces in those markets today for the USDJPY.
