Moves back above the old 2017 low today
The USDJPY gapped higher from the closing levels on Friday (from 107.81 to 108.15 at the 5 PM open). The low today dipped to 108.087 in the first hour of trading and has marched higher. The 2017 low going back to April 2017 was at 108.12. So the low today sort of found support near that old low level. That's bullish.
The move higher has now extended up to 108.87. The 108.84 is the 50% midpoint of the 2016 trading range. Does the rally slow here? Well I like the 109.00 area as a better level to stall the rally.
Drilling to the houly chart, the 50% of it's move down from the August 31 high comes in at 109.987. That - and some swing levels from the end of August (see red numbered circles) -should solicit sellers in that area (stops somewhere above 109.03).
On the downside, the move higher today stalled initially at the 100 hour MA but was then able to break and stay above. That is now support at 108.568 (blue line in the chart below). Stay above is more bulllish.
US stocks are opening with gains. The S&P is up 17 points. The Nasdaq is up 55 points. The Dow is up up 180 points.
