Moves to test the Monday low too
The USDJPY was mired between trend lines, but below the 100 day moving average and 100 hour moving average as the North American session began (see post here). The lower trendline was broken at the 108.74 area and selling intensified. The pair got the SHOVE lower that I was looking for in the earlier post.
The price has now moved down to a low of 108.349. That is just above the low from Monday is trading at 108.32, the 200 day moving average at 108.316 AND the 200 hour moving average at the same level. Needless to say that cluster of support, is a key support target. The buyers are leaning on the 1st test.
On a rebound, the price can correct toward the other swing lows from the week. The 108.58 was a swing low from yesterday. Below that is another swing low at 108.497.
If the correction can stay below those levels, the sellers still have a chance of retesting the 200 bar moving averages and low for the week, at the 108.318 area.
A move below the moving averages would look toward the 50% retracement of the move up from the April 1 low at 108.141.
