USDJPY falls to a cluster of support

The USDJPY is reversing hard to the downside as yields fall after weaker US data. The 2-year yield is now down -12.2 basis points. The 10-year yield is now down -8.1 basis points.

The fall in the USDJPY has taken the price from 147.368 to 145.886. That has the price testing its 100-hour moving average 145.997, it’s 50% midpoint of the move up from last week’s low at 145.953 and the 200-hour moving average at 145.86. That cluster of support may give buyers a reason to stick a toe in the water, with a stop on a break below. The low price from Friday at 145.725 would be the next target to give sellers more confidence.

If support holds, and the price is able to break back above the 146.000 level, there could be a rotation back up toward 146.287, where there should be sellers (see red numbered circles). The price based near that level earlier today before racing to the upside.

This article was written by Greg Michalowski at Source