New lows for the week but not running
The USDJPY did trade below the low from yesterday at 106.848, but only to a low of 106.789. We currently trade at 106.85. The last 4 hours have been scraping against the lows with a high price of 107.02 over that period.
Traders seem to be waiting for the equity market open. The futures are implying a lower opening but are off there lowest premarket levels at the moment.
Also helping the weakness in the USDJPY today is yields which have the 10 year yield down -10.1 basis points and back below the 1.0% level at 0.950%.
Technically, the USDJPY remains below its 100 hour moving average currently at 107.686. The high price today got close (relatively) to the MA (closest since breaking on Feb 24th), but fell off. Going forward, a move back above the 100 hour moving average would be required to shift the bias more to the upside. Until then, the sellers remain more in control. Close resistance today might be eyed at the 107.00-02 level (natural resistance).
Looking at the daily chart, the pair is testing the swing low price going back to June 2019 at 106.773. Below that level, and the next major target comes at the October low at 106.477. A move below that level opens up the door for a further slide from a technical perspective
