USDJPY dips to a new low. Lower inflation from Michigan helps that move to the downside. | Forexlive

The USDJPY has dipped to a new low after the better inflation readings from the University of Michigan.

Looking at the daily chart, the price has moved below the 61.8% retracement of the move up from the 2022 low and trades at the lowest level going back to early June 2022. That level comes in at 128.16. The low price reached 127.55. The current price trades at 127.80.

Stay below the 61.8% retracement at 128.16 keeps the sellers more in control. NOTE. The low earlier in the day did find support against that 61.8% level (see earlier video here). The low from May 2022 came in at 126.348. That is still a ways away but still a viable target on further momentum.

Drilling to the hourly chart below, the earlier low for the day came near 128.10 (just below the 61.8 at 128.16). The subsequent modest rally, took the price up to 128.82 before rotating back to the downside in the last three or so hours.

If the buyers are to get back above the 128.16 retracement level of the daily chart, watch the broken trendline at 128.46 as the next close hurdle. Get above that and traders could start to look back toward the 38.2% retracement of the short move down from Wednesday’s high. That level comes in at 129.581. It is also close to the January through low at 129.50.

For the trading week, the USDJPY has moved down 3.26%. That is the largest week declined since November 28 week (-3.475%). Looking at the weekly chart below, the 50% midpoint of the range since the March 2020 low comes in at 126.562. That is within shouting distance of the May 2022 low at 126.348