$USDJPY hanging around 88.00 level after overnight plunge
The USDJPY plunged in early trade on the back of slower growth fears which led to flight into the JPY as a safe haven refuge. The fall sent the pair through the support at the 88.00 level and down to a low at 87.35. Higher stocks has pushed the price back up toward the 88.00 level where the market is currently trading above and below.
The 88.00 level will remain a key level to watch today (this price was the low price in October 2009). Above the level should be bullish from a trading perspective, while below would be a bearish. The 100 bar MA on the 5 minute chart is currently at the 87.95 level as well. The midpoint of the days high/low range is at 88.02. All of which suggest the area is a level of balance, but we know a balanced market will lead to a unbalanced market. SO be on alert for a move away at some point.
Should the market move higher, the next target is the 88.17 level where the 200 bar MA is found. A break above should confirm the bullish bias and lead to further upside gains today
ON the downside, Watch the 87.78 level. This is the midpoint of the move up from the November 27th low. The 200 hour MA is around this level as well (87.83 currently). A move back below this level would confirm the bearish bias and should see further selling pressure.
