Trend lower finds a stall point
The USDJPY has trended lower on "risk off" flows. The trend move lower has had limited corrective moves, although the last 6-7 hours have seen a consolidation.
Helping to slow the decline is a lower trend line on the daily chart at the 108.736 level The low price stalled at 108.704 so far today. We currently trade just above that trend line level at 108.77. A move below opens the downside for more selling.
Drilling to the hourly chart, the trend move lower has broken most of the support levels. The most recent comes in at 109.02. That levels is now resistance/risk for shorts. Stay below and the sellers remain in full control. Move above and there may be some further corrective move higher in the pair (muddies the trend down waters). The high price since bottoming has only gotten to 108.90.
Taking the analysis a step further, looking at the 5 minute chart below, the consolidation has allowed the 100 bar MA to catch up to the price (blue line) . It is at 108.826. The price did move above that MA line for 20 or so minutes, but is back below the level. If it is broken (and stays broken), the 38.2% of the last trend leg lower comes in at 108.945. Above that the 50% is at 109.019 and the falling 200 bar MA comes in at 109.10 (and moving lower - toward the 109.02 level on the hourly).
Those levels could provide a corrective road map IF the trend line on the daily does hold support.
Key area for the USDJPY. Stocks gettting ready to open..
