Forex technical analysis: USDJPY continues to skim against support
50% and 200 bar MA on 4-hour chart.
The USDJPY continues to skim against the support defined by the 200 bar MA on the 4-hour chart. The 50% is at 111.245. The 200 bar MA on the 4-hour is at 111.215. The low just reached 111.213. The pair is holding.
Helping the pair, is the S&P which has found some support at the 2367.36 area (see prior post). It is no secret that the USDJPY traders are probably keeping an eye on what is happening in stocks. We currently trade 2373.65 in the S&P after reaching a low at 2367.82 - just above that support target.
For traders in the USDJPY, the good news is that the support level in it, pretty much matche the stocks support level. Although it is nice to know where the support is in stocks (in the S&P) and that may have a direct impact on the USDJPY's fortunes today, it is more important to trade the levels in the USDJPY if you are trading the USDJPY. So hold support, there is a chance for a further correction. Move below the support level, and there should be more selling. The S&P index may likely be breaking too.