USDJPY falls to new lows. GBPJPY also moves lower and toward key support.

Technical Analysis

The USDJPY is continuing the move to the downside. The pair reached a new low of 135.86. The price is down -0.50% and the biggest mover vs the USD in the early hours of trading.

The move lower is running further away from the 100 hour MA (blue line in the chart above). The 100 hour MA stalled the fall yesterday. Although the price took a quick peak above the 200 hour MA in the early Asian session, the price quickly reversed (from the high at 136.88).

Looking at the hourly chart above, the next target comes in at the 50% retracement of the move up from the low from last Friday. That level comes in at 135.731. Move below that – and stay below – will have traders thinking toward the 200 day MA at 135.04 down the road.

The GBPJPY is also moving lower and looks toward its 100 hour MA currently at 166.60. THe last two days has seen the lows bottom near the 100 hour MA. THis is the 3rd test. Will the buyers lean again and push the price higher? Or will the MA line be broken with momentum this time?

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