USDJPY working on it’s 3rd day down.

Technical Analysis

The USDJPY is working on its 3rd day down since peaking and closing near the corrective highs on Monday. That high stalled near the 50% of the move down from the last test of the 100 hour MA on November 9.

The low on Tuesday held support near the broken 100 day MA (blue overlay line at 141.14). The fall yesterday was met with more momentum once the price breached both the 100 day MA and the rising 100 hour MA. Falling below the 200 hour MA added to the selling momentum.

Today, the pair fell below a swing are between 138.74 to 139.09. Admittedly, the move lower was choppy around that swing area, but at 138.407, the pair will now use that area as close topside resistance if the sellers are to stay firmly in control. The low from November 15 is the next target to get to and through on the downside.

Looking at the daily chart below, the 38.2% of the move down from the 2022 low comes in at 137.24. That will be another target on more selling. Move below would be another step in the bearish direction as the pair corrects from the high reached in October (and the highest level going back to 1990 for the pair).

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