Approaches its 100 day moving average at 109.818
The USDJPY as moved lower after the lower than expected CPI data. In the process, the technical shift has moved to the downside after the break of the 100 and 200 hour moving averages. Both of those moving averages are near 109.98 area. It would take a move back above that level (call it 110.00) to shift the bias back to the upside. Stay below and the bears/sellers remain more control.
On the downside the pair is currently testing its 100 day moving average at 109.818 (blue overlayed line on the chart above).
Recall from yesterday, the Asian session low near the opening found support buyers against that level and moved higher. A break below the level today should open up the door for further downside with support coming in at 109.56 to 109.61. That area corresponds with swing lows from August 25, August 31, September 3, and last week’s lows as well (see green numbered circles).
