A short term chink in the USDJPY bullish armor, but work to do too

Technical Analysis

USDJPY saw some selling, but work to do.

The USDJPY has a chink in the bullish trend move armor.

You have to go the 5 minute chart to find it, but for traders it showed a modest win for sellers.

More specifically, the pair moved below the 100 bar MA on the 5 minute chart at 144.43. It also moved below the 38.2 to 50% of the last leg higher today. THat comes between 144.36 to 144.512. The low price reached 144.22.

What now?

Stay below the 144.513 area gives the sellers some comfort in the SHORT TERM. On the downside if the price can move below the 144.22 level, the 200 bar MA at 143.995 would be the next target to get to and through. The price would have to stay below that MA level to give the sellers a little more comfort.

Having said that, the buyers are still in firm control. Looking at the hourly chart, the 38.2% of today’s range is at 144.097. The 50% of the day’s range is 143.822. Get below those would be the next key targets. Absent that, and are the sellers winning? No.

But in the short term a small win for the sellers on the 5 minute chart.

USDJPY on the hourly chart

Helping is that yields are lower in the US. The 10 year is down -6.5 bps.

Also stocks are recovering a bit. The Nasdaq is up 106 points now and looking to snap a 7 day decline.

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