Following this morning’s poorer than expected CPI figures as the labor market continues to tighten, USDJPY sold off to below a key daily level I have been monitoring.
The first of the two daily levels have broken through. I would consider this as a strong breakout given that the whole candle body has exited that price level. Over on the 4-hour time-frame, that huge upper wick also provides a further indication that price tried to trade higher and held resisted.
There is, of course, one more level to test and that is at the 108.417~. If price breaks below that level, then we can expect an even greater downside ahead. I have a position entered for a longer term play, we will see how this plays out.