Low targets at 107.00 and the double bottom at 106.91 area
The USDJPY has run lower and in the process has traders looking toward the swing lows from April at 107.00 and 106.91 levels. The low has just reached 107.158.
The pair has seen an up and down today with the run lower erasing the gains on the day. The pair closed at 107.41 with an early Asian session low at 107.27. The rise took the price to a high of 108.07 - short of the 50% retracement target at 108.146 and a topside channel trend line.
The subsequent fall, has pushed the price back below the 100 hour MA (at 107.657 currently) and a lower upward sloping trend line. A swing area at 107.494-563 was also breached on the way down. That area - along with the 100 hour MA at 107.657 (and moving lower) - are risk levels for shorts looking for more dollar selling.
The 107.00 area has been home to a number of swing lows since April. 1. On two breaks lower, the price could only get to 106.91 before bouncing. That area remains a key downside target. Move below, and the downside opens up.
