Forex technical analysis: USDJPY back below that lower trend line

Technical Analysis

Author: Greg Michalowski | forex

Stocks are sliding. 

The USDJPY is trading near the low levels and in the process has moved below a lower trend line. That line was busted twice yesterday and failed twice. After the 2nd look below, the price retested the old line and held (see red circle 6). 

Now we have gotten another break as stocks slide (worst day since July 6th) and we are seeing the flight into the safety of the JPY (and weaker PPI).  Stay below the trend line at 109.71 is now close risk for shorts.  A move back above and there should be more disappointment for the sellers. It is time to step up sellers. 

Looking at the daily chart, the 109.44 is a lower trend line connecting the lows from April and June.