January 27, 2023

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USDJPY stays below MAs at the high. Breaking below swing area support

1 min read

Swing area support in the USDJPY is at 108.42 to 108.453 is being broken.

Recall from yesterday, the high in the USDJPY reached within a few pips of its 200 hour moving average (green line), only to find willing sellers. 

Swing area support in the USDJPY is at 108.42 to 108.453 is being broken.

Today, the 100 hour MA crossed below the 200 hour MA.  When the price got within sniffing distance of the MA level today, sellers again leaned and pushed lower. 

The price over the last five hours has moved from a high of 108.973 to the current low of 108.375. That move as just broken a swing area between 108.42 and 108.453. Moving below the level will now have traders targeting the 61.8% retracement, and post employment report low near 108.32.

Close risk for traders now would be the 50% midpoint of the move up from the April 23 low. That level comes in at 108.582. Stay below more bearish.

Stocks are continuing to move lower in premarket trading. The NASDAQ futures are now implying a fall of -267 points after falling -350 points in trading yesterday. The S&P futures are implying the decline of around -55 points, while the Dow industrial average futures are implying a decline of over -300 points.

PS JPY crosses are also moving lower with the EURJPY looking to test its 100 hour MA at 131.797. The 200 hour moving average is just below that at 131.714. A move below those moving averages would be more bearish.
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