200 hour MA caps the increase
The USDJPY moved up and back down after the stronger US CPI for the month of October.
Technically the price moved up to the 200 hour moving average at 108.894, and found willing sellers against that level. The price is currently trading to a new session low (and lowest price since November 7) . The next target comes in at 108.681 which is the 50% midpoint of the move up from the November low to the November high. Below that the swing low from last Thursday at 108.645 is also a downside target.
With the 200 hour moving average holding resistance on the quick move higher, that increases the levels of importance going forward. Also of significance today is a move back below the 200 day moving average at 108.992 (also a key natural resistance level). Admittedly the price has traded above and below that moving average line on a number of occasions over the last 2 weeks of trading. Nevertheless the run below the level today and the inability to get back above it, tilt the bias more to the bearish side.
Helping the USDJPYs slide today is yields. The 10 year yield is trading down -6.4 basis points at 1.868%. Also the premarket for US stocks are showing a softer opening with the Dow down 88 points currently.
