Moves towards the low area of the swing between 109.56 and 109.615
USDJPY does not see buying dollars compared to EUR, GBP, CAD, AUD, NZD and CHF during the last hours of trading.
In fact, it sees a sharp rise in USD sales as risk flows divert cash flow to the “relative safety of the yen”. PS JPY crosses also get a hammer.
Looking at the hourly table, the pair is now cracked below the 100-day moving average of 109,818 (see blue line marked D1). The next target will arrive against shallow swings between August 25, August 31, September 3 and September 9, between 109.56 and 109.615. Move down from this level and it will open the door to other recent lows of 109,479 and 109,407.
Move down from that area and the pair trades outside the 20-day range, according to which the pair trades between 109,407 and 110,442. The trading range of 103 pips in four weeks is relatively very narrow / trendless.