Pair trades in channel but lower on the day
The USDJPY is lower on the day (closed at 111.32). The price action has seen the pair waffle higher and lower with a slight bearish bias.
The pair trades between a channel with 111.41 capping the topside and 110.97 defining the low. The price trades at 111.07 after the Markit PMI data showed Manufacturing above estimates but the Service PMI and composite below expectations. At 10 AM the Richmond Fed index will be released with the expectation for 18 vs 20 last month.
Drilling down to the 5 minute chart, the price action shows the ups and downs. However, recent price action is showing more selling. Looking at the chart below, the price has moved tested the 100 bar MA (blue line) two times over the last few 5 or so hours of trading - and held below. Sellers? It looks that way. The MA line comes in at 111.184 and is a risk level for shorts. The 200 bar MA is at 111.24.
The pair is waffling up and down, but the bias is more bearish. Watching for a break of the lower trend line to confirm more bearish.
