The USDJPY took another run to the downside after the move back above the 38.2% of the April trading range gave way at 156.615. The momentum to the downside increased on the break below the 100-hour MA at 155.923 and next ran toward the 50% of the April range (at 155.505) and the 200 hour MA (at 155.247).
That 200 hour MA initially stalled the fall after intervention earlier today, and then broke below the level on the 2nd look with more momentum moving to the day’s low at 154.50. .
Now – with the current tumble lower – the price has made another “try” below the MA, but once again bounced higher.
The 100-hour MA is being eyed again at 155.926. If seller are intent on the downside, that MA is a level to lean against and staying below is required..
If, however, the markets are just in the post-intervention chop where buyers and sellers are scared and that leads to sharp up and down moves, then a move back above that MA, may lead to more covering as traders get whipped around.
US yields have moved lower with the 2-year now down 3 basis points and 10-year yields down over 5 basis points and near session lows.
The dollar is trading near lows vs other currencies as well including the GBP, CHF and NZD. The dollar is not at session lows vs CAD, AUD and EUR, but is still moving lower against those currencies.
This article was written by Greg Michalowski at www.forexlive.com.
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