Dollar selling takes the pair further away from its MA levels today
The USDJPY this week traded near the 100 day MA (blue line on the daily chart below) but found sellers against that level on Monday, Tuesday and Wednesday. On Wednesday, the price moved lower and closed near its lows for the day. Yesterday was a modest day lower. Today we are seeing a further momentum move away from that 100 day moving average and toward the swing lows from June.
Looking at the daily chart, the June 11 swing low came in at 106.565. That is the next target. The low price just reached 106.67 in the pair. Below that and traders will be targeting the June
23 low at 106.067 and below that the May swing low at 105.984. Those are the target levels on the daily chart.
Drilling to the hourly chart below, the price high today stalled against a topside trend line in the Asian session. Sellers against that level started the run lower. The price in the European session has traded above and below a lower channel trendline, but has also spent most of the time below the 61.8% retracement of the move up from the June 23 low. That level comes in at 106.866. It is a traders risk level in the short-term. Stay below and the sellers remain in control.
On the downside, a swing high from June 24 comes in at 106.647. A swing low from the same day comes in at 106.373. Below that is the June 23 low at 106.067.
Sellers are making the play in trading today and moving further away from that 100 day moving average in the process. The move below the 61.8% retracement of the shorter term is also indicative of sellers in control. Stay below keeps the bias to the downside.