Both pairs crack lower and through technical levels.
The USDJPY has extended to a new session low and in the process, fell below the lower trend line at 107.77. The next target comes in at 107.563. On a break of that level, traders will be targeting the lows from end of March and early April at 107.122, 107.00 and the most recent swing low from April 1 at 106.908.
It will take a move back above the broken trend line at 107.77 and then the broken 61.8% at 107.85 to hurt the bearish bias today. That is the risk level for shorts/sellers looking for more downside momentum.
The EURJPY is also trending lower today, and is the weakest currency pair today. The price has moved below it's 200 hour MA (green line) at 117.904 currently. It fell below the 100 hour MA earlier in the Asian session - currently at 118.356 (see chart below).
The pair is testing a swing area at 117.342 to 117.499. A move below the lower level of that area would put the pair in the lower extreme area that runs down to 116.344 low from April 2.
If the price now moves back above the 117.50 level, there could be some covering of the shorts today on back of holding support. Be aware.
