The USDJPY is coming under some pressure now as the US stocks move lower. The Dow industrial average is down around 271 points while the NASDAQ index is down 110 points (-0.77% and -0.71% respectively). The S&P index is down around -0.62%.
Looking at the USDJPY hourly chart, the price high stalled near a downward sloping trendline connecting highs from last week. Since then, the price has moved back below its 100 hour moving average at 113.560. The high price for this hour has stayed below that moving average level keeping the sellers in control.
The 200 hour moving average at 113.369 becomes the next downside target. Early in the Asian session (the opening hour). The price based near that 200 hour moving average and moved higher. A move back below the 200 hour moving average would tilt the bias more to the downside. However note that last week, the price did tried to move below that moving average level only to fail fairly quickly. As a result traders will be a little bit wary on a break. However, the bias would nevertheless tilt more to the downside on a break
