Technicals helping to push the pair lower
The USDJPY has skipped lower in early NY trading, continuing a fall through technical levels along the way. Each has helped to encourages the sellers.
Traders at European highs, stalled at the 50% of the move up from the July 25th low at 111.36 and the 200 hour MA (currently near the same level). That gave sellers the confidence to lean and push lower. A trend line was next to be broken, followed by the 61.8% retracement and the low from Friday at 111.09. The price just extended to a low of 1110.99, and trade just above that level.
Looking at the daily chart below, the pair is testing/cracking a trend line at 111.05 (connecting lows from May and July). That is a key level. Stay below is bearish. Stall and there may be a corrective move today.
If the downside momentum can be maintained, there is room to roam with the end of July swing low at 110.58 and the early July low at 110.27 as targets. The 200 day MA is at 109.99 currently.
