USDJPY falls to a cluster of support

<p>The USDJPY is reversing hard to the downside as yields fall after weaker US data. The 2-year yield is now down -12.2 basis points. The 10-year yield is now down -8.1 basis points.</p><p>The fall in the USDJPY has taken the price from 147.368 to 145.886. That has the price testing its 100-hour moving average 145.997, it's 50% midpoint of the move up from last week's low at 145.953 and the 200-hour moving average at 145.86. That cluster of support may give buyers a reason to stick a toe in the water, with a stop on a break below. The low price from Friday at 145.725 would be the next target to give sellers more confidence.</p><p>If support holds, and the price is able to break back above the 146.000 level, there could be a rotation back up toward 146.287, where there should be sellers (see red numbered circles). The price based near that level earlier today before racing to the upside.</p>

This article was written by Greg Michalowski at www.forexlive.com.