The USDJPY has moved below the old high from March 28 at 125.093. Recall from yesterday, the price moved above that level, and on the hourly chart peaked against the underside of a old broken trendline (see chart above). Sellers leaned against that level and consolidated over the last 24 hours or so.
The CPI has helped to push the price lower and back below that old high level. That level will be a barometer for both buyers and sellers in trading today. Can the sellers keep pressure on?
On more downside momentum, the 100 hour moving average comes in at 124.487 and would be the next major target on the increased selling pressure.
Of note technically off the longer term monthly chart below, is that the price high yesterday and today tested the swing high from June 2015 at 125.851. The high price yesterday reached 125.764 just below that key level. The high price today was at 125.75. The highs going back to 2015 are symmetrical to the highs seen over the last two months. The inability to move above those levels may give sellers more confidence to lean and push lower.
Conversely a break above would likely lead to stops being triggered and more upside momentum.
The opening bell is a head with the S&P index up around 36 points in premarket trading. The S&P E-mini contract has come off it’s highs and trades up around 0.75% or 32.25 points at 4441.50.
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