USDJPY hits new low amid weaker ISM services data, Tests key support target. | Forexlive

The USDJPY touched a new low following weak ISM services data, reaching the upper boundary of a lower swing area between 130.345 and 130.60, with the low at 130.586. Short-term buyers have pushed the price back up, now trading at 130.90, after closing the previous hour at 131.08 (before the news release). Market participants are now watching the natural resistance level at 131.00 as a close risk defining level. Stay below keeps the sellers more in control in the short term, but ultimately there are more upside targets that would need to be broken – including the 200 hour moving average.

Yesterday, the pair fell below that 200-hour moving average (green line in the chart above), entering a higher swing area between 131.55 and 131.84. The Asian session’s high today peaked at 131.837, remaining within the swing area and below the 200-hour moving average in the process. The US trading session experienced a downward momentum surge, with technical support levels holding during the initial test.

Sellers continue to dominate, but they must break through the swing area to pave the way for a decline towards March’s extreme low of 129.633. If the swing low at 130.345 is broken, additional support is anticipated at the natural level of support at 130.00.

For now, however, traders are targeting 130.60 and then 130.345.