The USDJPY has moved to the lowest level since May 11 in the process the price took out the June 11 and June 12 lows around the 106.565 level. The low price for the day reached 106.511. We currently trade at 106.587.
Looking at the hourly chart, the break to the downside reverse day break to the upside earlier in the Asian session. The run higher was propelled by the comments from Navarro. Technically the price moved above a trendline, the 100 hour moving average (blue line in the chart above). The 200 hour moving average (green line in the chart above). However, the price rise stalled near a swing area between 107.16 and 107.226 (yellow area in the chart above)
The price started the New York session below its 200 hour moving average. When it cracked both the 100 hour moving average and the underside of the broken trend line, buyers quickly turned to sellers. The price ran lower.
There is a lower trendline around the 106.709 level. The earlier low for the day was at 106.73. That area between 106.709 and 106.73 is now close risk. Traders would not want to see the price move back above that area given the break outside of the confined trading range seen of late.
Buyers had the shot earlier in the day.
Now the sellers are taking control and taking their shot. Can they keep full control? Stay below the risk level.