Crude oil rises by 26%
When ever has a 26% surge in oil prices led to a run higher in stocks, and a risk on rally in the USDJPY? Well today it has. Him
Of course the run higher is a boost to the US oil industry, but even with the large gain, crude oil is still well below levels in February when the price was above $50. The current price is at $25.31. In the stock market the S&P index is up 1.50%. The NASDAQ index is up 1.05% and the Dow is up 1.34%.
Looking at the USDJPY, it moved up from a level of about 107.22 a high price of 108.02. That move to the upside took the price above the 100 hour moving average at 107.739. That was the 1st break above the 100 hour moving average since March 26 when the moving average was up at 110.82 area. Staying above the 100 hour moving average would keep the hope for further corrective probing to the upside in place. A move back below will disappoint the buyers.
On the topside the price did stall right near the 61.8% retracement of the move down from the week's high. That retracement comes in at 108.028. If the buyers are to keep in control, getting and staying above that level will be a hurdle. Above that level is the 200 day MA at 108.294.
