New session lows for USDJPY
The USDJPY has fallen to a new session low as stocks falter and turn into the red.
The pair has moved down to a low price of 108.74. That is near a swing level at the 108.72-736 area. There has been some buying against the area. If the price can move below that level I would expect further selling pressure.
The price action has also been trading above and below its 200 day moving average today at 108.842. The up and down action around the MA level is suggesting that the market does not know whether to go higher or lower. So it waffles around the MA level. What we also know from the hourly chart above is that at the price high, the pair could not extend above the 109 level nor the 100 hour moving average (blue line in the chart above currently at 109.02). The high price for the day stalled at 108.992.
The reaction lower has been helped - and reactive to - a fall in US stocks. The major indices are now trading in the red after opening higher.
A snapshot of the major indices currently shows:
- S&P index -4 points or -0.13% at 3108.79. The high price reached 3119.43
- NASDAQ index -14.3 points or -0.17% at 8552. The high price reached 8588.88
- Dow -49 points or -0.18% at 27599.16. The high price reached 27745.20.
