Downgrade in Japan? Weak US data sends USDJPY back down instead

Earlier today, Moody’s warned that Japan might be downgraded. This led to a sharp rise in the USDJPY.

Now the weak US data has led to a reversal in the pair as focus comes right back on the weakening US economy. 

The pair fell back down to the 100 hour MA at the 81.28 level. The  50% of the move up from the low today comes in at the 81.23 level. The low has reache 81.24.  A move below these levels will open the door for further downside potential now.   Watch the 81.36 level for close upside resistance now.  Above that a move above the 81.46 level would be a signal that the trading waters are muddy.