The pressure remains
The USDJPY pushed lower in Asian Pacific trading. Better data for wage earners (average cash earnings +0.9% YoY) was a catalyst. Lower stocks have also led to Yen strength as well.
Technically, the price has moved below support at the 110.96-111.03 area. These were swing lows from February (see chart above). In mid-March, the price fell below this support level but could not sustain the momentum. Today' s move fell below that low (at 110.657). The current price is trading at 110.47. The price moved above the 110.657 level earlier in the NY session on reports the BOJ to discuss easing at the April meeting, but that ran out of steam when US trade data was weaker.
There is a support trend line on the 4-hour chart at the 110.30 currently. The low extended to 110.26 today. A move below these levels are the next downside targets. The 110.657 old low from March 17th will be close resistance. A move back above, may keep a bid the 2nd time.
As the price wanders lower, the expectation for potential intervention anxiety will increase. So if short (and technicals are more bearish), be cautious. It may lead to support levels finding profit takers as well.
