Price moves away from technical resistance
The USDJPY banged against the 200 hour MA (green line in the chart below at 124.559) and the 50% retracement of the move down from last week's high to last week's low (at 124.527), but has not taken the US Empire manufacturing data very well. The price has wandered back down from that level. The high price extended to 124.569.
Having said that, the GDP data at of Japan, last night was less than stellar, with second-quarter GDP coming in at -1.6% annualized and inventories building That should help to keep the pair somewhat supported on dips, but where is the dip?
Looking at the hourly chart above, the trend line currently comes in at 124.215. The low for the day comes at 124.174. Although sellers have the upper hand - holding against the key resistance area above - this area will be watched for support buyers on dips today.
Remember the market is still in the grips of summer time trading. So when support or resistance holds there is always the chance for the swing back in the other direction. So just be aware as support is being tested. We need that next break and then the sellers can look for the next target level. Those come in at the low from Friday at 124.05 and 123.779 respectively.
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