The USDJPY has moved down to test its 100 hour moving average at 133.887. The low price just reached 133.86 and bounced back up, but is back down retesting that key moving average as I type.
Move below - with momentum - would have traders looking toward the swing lows and swing highs from last week starting with 133.35 and moving down to 132.978. Move below those levels and it opens the door for a run toward the 200 hour moving average (green line in the chart below) at 132.223.
The price has not traded below its 100 hour moving average (or 200 hour moving average) since May 30. Today the price has moved below that moving average, but so far has not closed below that on an hourly bar.
Also of note is the price has moved below a lower trendline which is more bearish in the short-term.
The move to the downside is going against yield spread between the US and Japan which has driven the USDJPY to the highs. Instead traders are focusing - at least today - on the relative safety of the JPY. The JPY is also stronger vs. the other major currencies with the largest gains vs. the GBP , AUD and NZD.
