The USDJPY has moved sharply to the downside in the last hour of trading.
The move lower has now taken the price back toward the rising 100 and 200 hour moving averages (blue and green lines in the chart above).
Recall from earlier in this week, the price bottomed against the 200 hour moving average on Monday and Tuesday before pushing higher. The 200 hour moving average is being tested as I speak at 113.628, while the 100 hour moving average has just been broken at 113.718.
If the buyers are to keep control, this level needs to hold. The price needs also to get back above the 100 hour moving average and stay above that level. A break below and we could see a further downside slide.
At the high yesterday and today, the pair tested a swing area going back to early November between 114.203 and 114.307. The high price reached 114.27 yesterday and between 114.20 and 114.24 at the swing highs today (see red numbered circles).
US stocks are now mixed with the NASDAQ index turning negative. The S&P is near unchanged levels.
- NASDAQ -100 points or -0.65% at 15462.87
- S&P index are near unchanged at 4709
- Dow industrial average up 130 points or 0.36% at 36059.90
In the US debt market, yields are moving lower in the shorter end mostly. The five year yield is down -7.5 basis points at 1.1832%. The 30 year bond is still up marginally at 1.855%.
