Key Highlights
· US dollar after trading close to the 123.80 resistance area against the Japanese yen found sellers and moved lower.
· There was a support trend line formed on the hourly chart of the USD/JPY pair, which was breached to open the doors for more losses.
· In Japan, the Nikkei Manufacturing PMI was released, which posted an increase from 52.4 to 52.8 in November 2015.
· Today, the US Gross Domestic Product Annualized will be released by the US Bureau of Economic Analysis that may impact the USD/JPY pair in the near term.
EUR/USD Technical Analysis
The US dollar enjoyed a decent run against the Japanese yen, but it failed to overcome sellers near the 100 hourly simple moving average. Now, the USD/JPY pair settled below the 100 and 200 hourly MA. This is not all, as there was a support trend line formed on the hourly chart, which looks like broken as of writing.
The pair remains at a risk of a break lower, as there are many bearish signs emerging on the hourly chart. The 61.8% Fib retracement level of the last move from the 122.21 low to 123.74 high was also cleared, suggesting that the recent trend line break may be real.
On the upside, if the pair attempts to correct higher, then an initial resistance can be around the 200 MA, followed by the 100 MA. On the downside, the pair may head towards 122.30 if sellers gain control.