Bias shifts to the bearsThe USDJPY found support earlier in the day at the 100 hour MA(blue line), The comments from N. Korea that Trump’s comments over the weekend were a declaration of war, are just more verbal rhetoric, but the
- stocks have been vulnerable and they cracked even lower,
- Gold move higher and trades above $1300 now (up $5.70 or +0.45%),
- Yields moved lower (10 year is down -3.5 bps now)
All that helped to push the USDJPY below the 100 hour MA. The 100 hour MA is now risk for shorts (what was support is now resistance).
The next targets come in at the 111.64 low from Friday (testing as I type). The 200 hour MA is at 111.435. A move below the 200 hour MA and the traders will looking toward the 100 day MA at 111.075 and 50% of the move up from Sept 15 at 111.12.
The market got a push. We are seeing action now. The USDJPY has cracked the support.