New lows with the cluster of MAs and 38.2% approaching
The run is not racing but the USDJPY is pipping lower. In the process, the 111.633 area held the corrective move higher off the NY's initial low. Bearish.
The pair is approaching the target area that has a cluster of technical levels to contend with including:
- 38.2% of the move up from Feb 27 at 111.45
- 100 day MA and rising 200 hour MA at 111.398
- 200 day MA at 111.357
That area could put a pause on the selling just because risk is defined and limited (stops on a break below though).
Helping the downside is the fall in stocks and falll in yields as well.
Although stocks are off the session lows, the declines in the major indices are in the -0.75 to -1% range currently.
As far as yields, the benchmark 10 year yield is down by -4.87 bps. 2 year yields are down by -4 bps.