The British pound also fell early during the session, but it looks like the 1.34 level is trying to hold the pair up.

We are sitting right around the 200-day EMA that could come into the picture and if we rally from here, we could see a move towards the 50-day EMA. But if we were to break down below the bottom of the trading session up to now on Tuesday, it could send this market down to the 1.33 level.

Ultimately, this is a market that I think continues to be very noisy around the 200-day EMA and with a significant amount of chop, I think if you start to look at this through the prism of short-term charts, I don’t think we’re ready for a big move. We are just sitting right in the middle of what I think is a 200-pip range.

USD/JPY Technical Analysis