USDJPY making new highs for the day/week

Technical Analysis

Author: Greg Michalowski | usdjpy

Final Japan GDP,  Current account, Trade balance, Bank lending out at 2350 GMT

The USDJPY is making new highs for the day and week, and also trading at the highest level since November 16 too.  The US passed the stopgap spending bill.  Stocks in Australia are looking better.  Perhaps that is leading to some dollar buying. 


Technically, the pair moved above the 100 hour MA during this session yesterday - after spending Wednesday and the early hours of Thursday between the 200 and the 100 hour MA (blue and green lines in the chart above).  When the price broke above that level, and then broke above the 50% retracement, the steps were being taking to go higher.  Yesterday, higher yields, and a favorable stocks also helped the tone for the pair.

The high from earlier in the week has now been broken at 113.085 and we look toward the next target at the 61.8% of the move down from the November high at 113.24.   Above that the 113.32 swing high from November 16th will be a door to get through for more upside. That is a key area to get to and through (113.24-32). It should be a tough nut to crack. 

There is a slew of economic data due out at 2350 GMT with GDP and trade data the highlights.