Tests Friday lows and September 5th highs
The USDJPY fell to a new session low and the process is testing a key cluster of technical levels in the 111.71-759 area.
The area includes the:
- 38.2% at 111.759
- The low from Friday at 111.748
- The high from September 5th
- The upward sloping trend line at 111.71
- The 100 hour MA at 111.71
All those technical levels are in that area. A move below would open up the downside for more selling.
The USDJPY has been mired in a narrow 28 pip range for most of the day. The range is now up to 36 which is still well short of the month long average range of 60 pips. There is room to roam on a break below the cluster of levels. Look for the sellers to make that push.
Early today, I outlined the resistance against the key 200 day MA at 131.056. That MA did put a lid on the pair against that MA with an intraday high at 131.036. The current move lower has taken the price to a low of 130.57. A lower trend line is targeted at 130.43. The rising 100 hour MA comes in at 130.066.