The USDJPY reached a new low overnight for the latest move lower at the 88.46 level. The price has retraced to a high at the 88.98 but is now back down at the prior move low for this consolidation period at the 88.72 level. The market is at a crossroad. Does it move back above the decline 100 hour MA, or continue the trend down.
The bias remains to the downside for the pair below the 100 hour MA. Look for sellers on rallies toward the level. A move back below the 88.72 level could solicit some selling pressure this morning.
On the downside, the next target comes in at 88.23. This is the 61.8% correction level of the move up from the November 2009 low to the January 2010 high. Below that level a move toward 87.50 cannot be ruled out.
