New lows (going back to October today) but off those lows
The USDJPY took out the low from yesterday at 106.922 and stretched to 106.842. That move extended to the lowest level since October 8 2019. However, momentum could not be maintained and targets at 106.77 and 106.477 could not be reached.
So the price has rebounded back up to a intraday swing high prices of 107.66-68. We currently trade at 107.35.
Looking at the hourly chart, swing lows from Monday came in at 107.34 – 40. Admittedly today the price has traded above and below that area on a number of hourly bars. However, a move above that level - with additional momentum above the highs for the day - should solicit more corrective action to the upside with the falling 100 hour moving average at 108.17 as the next upside target. That's a positive case for dip buyers.
The reality is that the sellers still remain in control. On the downside, the low for the day at 106.842 and the lower trend line at 106.690 are the next downside targets.
Taking a broader look at the daily chart the 106.77 swing low from back in June 2019 and the swing low from October at 106.477 are downside targets to get to and through from a technical perspective.
Last Friday and continuing this week, the price has moved below and close below its 200 day moving average and 50% retracement near the 108.33 area. That gives the bears the advantage and control. Ultimately would take a move back above that area to lessen the bears control from a longer term prospective. The pair has been down in 6 the last a him 8 trading days. Today is and up day above 107.11. Keep that level in mind on for the weakness.
