US 10 year above 2.40%. Gold at 5-month low.
The USDJPY has moved to new session highs helped in part by a tick up in US yields. The 10 year is back about 2.40%.
Gold is also trading lower. It reached to five-month lows in trading today at $1239.54. Lower gold tends to support the US dollar.
The FOMC is on tap for a 25 basis point hike tomorrow. US PPI was better than expected today. Those things can also be supportive for the US dollar
Also helping was a break of a technical trendline at the 113.50 level on the hourly chart. That level is now risk for longs.
Targets?
The high from yesterday reached 113.684. About that is a topside trendline which stalled the pair yesterday. That trend line cuts across currently at 113.86 (and moving higher). Should momentum take the price toward that trend line, look for sellers to take some profits (at least on the first test). We are currently a good 30 pips away but the range today is very narrow at about 28 pips. So there is room to roam on a break, and the buyers are more in control on the trend line break.
