Falls below the support floor
Yesterday, the technical talk was centered around the 118.22 level. Traders came in against this level and a correction ensued. The stocks in China tumbled once again today and that support floor level was broken. It now becomes a key ceiling above.
Looking at the 5 minute chart the initial plunge lower sent the pair to a low of 117.83. The correction higher off of that low, reached up to....anyone....118.23 - just a pip above the 118.22 level Perfect. The 100 bar MA has also held resistance (blue line in the chart below) That will be a close level for traders to eye today. Stay below and the bears remain in the drivers seat. Move above and there may be some further correction, but remember 118.22 above.
New targets below include the swing low from early Feb 2015 at 116.87, the swing low from August at 116.09 the lows from Dec 2014 and Jan 2015 at 115.55 and 115.83 (see daily chart above).
The USDJPY (and JPY crosses) are the early trenders for the new year. Trends are fast directional and go further than traders expect. Moreover, 2015 was largely a non trending year. The floor war broken at the 118.22-50 area. That has to be respected.
