Tests 100 hour MA and backs off. Stocks move lower.
The USDJPY has been hit today on the back of trade concerns, stock declines and the Pavlovian reaction of buying the JPY as a safe haven. However, the better than expected ADP (+241K vs +210K est) has given the pair something to cheer about for the USD (at least temporarily).
The pair moved up to a high of 106.273. That took the price just above the declining 100 hour MA at 106.263. However, the price has since declined back to where it began before the report, and trades at 106.145 currently.
The stock markets reaction may have something to do with it. The Dow futures are now implying a -561 point decline (was about -470 prior). The Nasdaq futures are now down -126 points (vs -106 points prior). HMMMMM. The stocks are not looking good..
Looking at the hourly chart, the 38.2% of the move up comes in at 106.086 and the 200 hour MA comes in at 105.916. Yesterday and on Friday, that 200 hour MA was broken but tended to snap back higher on each break. Traders will be more cautious on the next break.
So....
- 100 hour MA resistance above, and
- 200 hour MA support below
With stocks back to being the focus now.