USD/JPY lost the 100 line that it conquered back in early May. It is currently trading at 99.83, after already dipping under 99.80. The trigger for the move was the worse than expected ISM Manufacturing PMI.
It seems that the terrible manufacturing PMI was just the excuse, and that the pair would have broken the line on any result. The terrible figure provided the perfect environment for the crash.
The loss of a digit could start an avalanche or prove to be a false break to flush stops.
Update: the pair now trades at 99.65, extending the fall. It seems more than a move to flush stops.
Update 2: 99.62 is the fresh low so far. Support is found at 99.40.
Update 3: USD/JPY loses also the 99 level as the dollar selloff extends across the board. EUR/USD is at the highest in 4 weeks. AUD/USD and GBP/USD are rallying hard.
Dollar/yen already got close to this line earlier in the day, during the European session, and hit a low of 100.02 before bouncing back up.
The trigger for the fall was another slide in the Japanese stock market: the Nikkei index lost over 3%.
For the next levels, see the USDJPY forecast. Here is a live chart of USD/JPY:
[do action=”tradingviews” pair=”USDJPY” interval=”60″/]
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