USDJPY Falls Below 61.8% and Swing Zone
USDJPY fell to new session lows after weaker than expected retail sales report. In the process, the price has now moved below the 61.8% retracement of the move from the November 9 low at 104.129. The pair is also below a swing zone between 104.107 and 104.153. The next target arrives at level 104.02. It was the swing low going back to October 29. Going below this level (and 104.00) would likely open the door for further lower polls. The risk of closure is now 104.153. A more cautious risk for sellers looking for more bearish momentum would be in the 104.36 area.
Yesterday the price rose and then fell. In the New York session, the price fell back below its 200 hour moving average (green line currently at 104.614) and found sellers against this level in the Asian session (the high hit 104.56 towards the end of the Asian session). Staying below this level allowed the bears to maintain control. Move below the 50% retracement at 104.424, then yesterday’s swing low at 104.361, bearish bias firmly intact.