There were a lot of rumors flying around concerning the USDJPY cross. It was mentioned that a sell orders lined up at 99.00 by Japanese exporters with sell stops below 98.00.and then there is a talk of option at 99.00 and the prospect at this price of being protected thereby could help limit USDJPY upside potential.
On the chart, USDJPY was limited by the downtrend blue line and it has been a sideway moves since Tokyo lunch hour. A descending triangle was formed with base at 98.30 which is 38.2% fibo retracement and 127% fibo extension. About one hour before US session open (refer to the aqua color triangle) prices tried to penetrate the daily pivot point but failed and a dark cloud cover candle was formed. The 60 period ema sloped downward and started to detach itself from the 200 period ema.
I am waiting for the cross to breakthrough the 98.30 level during the US session. Few minutes before, it did crash through but a spinning top candle was formed. Finally at the opening of US session prices moved strongly downward passing by the weekly pivot point and the daily Support of S1. It settled its low at 261.8 extension which is 97.94 or near the double zero 98.00.
