The pair breaks lower today on risk off flows and FOMC follow through
The USDJPY is moving lower as traders worry about China/US today. There may be some follow through from the FOMC dollar selling as well. The BOJ kept rates unchanged last night as expected. Gold is up and yiels are lower in the US which is also a pressure on the USDJPY pair today.
Technically, the price fell below and away from its 100 and 200 hour MAs today (blue and green lines up at 108.786 and 108.675 respectively). The price also ran below a swing area at the 108.44-47 area (see yellow area). The price has mostly traded above that area since October 15 (with a couple failed attempts to go lower on Oct 18 and Oct 23). That area is a risk level on a correction higher. Stay below is more bearish.
The 108.27 area is a closer risk for shorts. That was the swing low from October 21 (the price also tried basing near that area on October 23). Traders will be eyeing that level bias clues.
On the downside, the pairs low today stalled between swing lows from October 14 and October 15 at 108.025 and 108.15. The 108.02 was a also a swing low going back to October 1.
