Bond yields off lows

The dollar was moved back higher and so has bond yields (after the poor 10 year auction). The two are traveling in similar paths.

  • The USDJPY has moved back above the 111.98-112.06 level. The 111.98 is the 38.2 of the move up from the Election Day lows. The 112.06 and 112.04 were swing lows in last weeks trading. Staying above will target the 100 hour MA at 112.38 currently (and moving lower). There has not been an hourly bar close above the 100 hour MA since Jan 30
  • The EURUSD moved above the 1.0706 level (38.2% of move since November). The area around the 1.0706 level has been home to swing low on Friday, swing low on Monday. On Tuesday the price fell below the level and corrected up to the level in trading yesterday. Today's move above should have solicited buyers, but it failed on each little move above. The high today reached 1.0717. We are currently trading at 1.0684. The 1.0706 remains a bullish above/bearish below line in the sand.
  • The GBPUSD moved above the 200 hour MA and 50% retracement at 1.25259 and tried to stay above in the NY session. The high moved above the high seen yesterday at 1.2545 (the high today reached 1.25487), but momentum failed and the price moved back below the MA level. We are currently trading right at the level as traders decide which way it really does want to go. Right not trading at the midpoint of the 5 day range and at the 200 hour MA, it is right in the middle the range.