Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

USDJPY Dives Below The Years Midpoint After Chicago PMI

|Includes: Invesco CurrencyShares Japanese Yen Trust ETF (FXY)

The USDJPY (NYSEARCA:FXY) has taken a dive below the 50% of the years trading range on the back of the weaker than expected Chicago PMI report. That level comes in at 80.09 and will now be resistance. The next key target to the downside comes in at the 100 day MA at the 79.54 level. The price has not closed below this level since February 8th. I would expect profit taking buying against stops below this key level on the 1st test.

Before that level there may be some support at the 79.83 where the bottom channel support is located on the hourly chart below.

http://www.forexlive.com/blog/2012/04/30/usdjpy-dives-below-the-years-midpoint/