Hanging near the week’s lows
The USDJPY gapped lower after the weekend tweet from Trump of China tariffs going higher on Friday. It is Friday and the price has moved from a high trade on Monday at 110.956 to a low yesterday at 109.466. Just above the low is a swing area in the 109.59-616 area that the pair is now testing. A move below that swing area will have traders going for the low at 109.466.
The last two days have consolidated the ranges. In the Asian session, the price moved higher in the face of the tariffs, probably helped by rises in the China equity markets. However, that hope, has faded a bit.
The US stocks have seen a move back to the downside. The Nasdaq moved to a low of 7825..05. We currently trade at 7834. The S&P is down -24 points at 2846.05. The low reached 2843.23.
Right now in the pair, traders are leaning on the swing area. Stay above keeps those dip buyers happy. A move below might sour the mood for the dip buyers.