The USDJPY fell yesterday as investor flows fed into the relative safety of the JPY (US stocks tumble).
Today, and Asian session bid for the price back up toward its 100 hour moving average (blue line in the chart above) currently at 128.938. The high price stalled just below that level, and rotated back to the downside in the European and into the New York session. Technical selling kept the lid on the pair.
Bearish.
The price fall has seen the price break below the low from last week which was near the 38.2% retracement of the move up from the March 31 corrective low). That retracement level comes in at 127.508. The low price today has extended to 127.018 just above the natural support at the 127.00 level.
Bearish
What now?
On the downside the swing low from April 27 reached 126.93. Below that and traders will look toward minor support 126.67. Move below that swing area between 126.67 and 126.931 have traders targeting the 50% of the same move higher at 126.324.
In the short-term, a move back above the 38.2% retracement (and the low from May 12) would give some upside hope after the sharp move down today. However the price would have to stay above that level in order to give the buyers happy. The New York session high reached 127.965 just below the natural resistance at 128.00. That would be another target that if broken would give buyers more confidence..