New lows but buyers bounce the price off the trend line on the test
The USDJPY moved lower on Friday and created and tested a trend line (see red circles numbers).
A few minutes ago, that trend line was tested again (the 4th point on the line) and bounced.
US yields are lower by about 2-3 bps in the 5 to 30 year sector. That tends to hurt the USDJPY. US stocks are more mixed with a rotation into Dow stocks ( up 91 points). The tech heavy Nasdaq is now down on the day at -3.4 points.
A break below the trend line would be more bearish and look to test the swing lows from last week at 110.308 and 110.104 respectively. Until then,the dip buyers are trying to take control.
The 100 and 200 hour MAs (both are dipped to the downside now) are both at 110.807. The 50% of last week's trading range is at 110.765. The broken 61.8% is at 110.609. They will be the upside targets that would need to be busted to push the pair higher (see chart above).