Yields higher. Stocks in US looking to open higher.
The USDJPY has taken another leg higher and trades at a new intraday high at 113.27. US 10 year yield is up to 2.4825%, that is higher than the October high of 2.473%. The high yield for 2017 is up at around 2.62%. That would be the next target on continued upside momentum. European yields are also higher with the German 10 year up 3 bps. France yields are also higher (up 3.4 bp). US stocks are looking to open with gains. The Dow is up 94 points. the S&P futures are up 9.5 points. The Nasdaq futures are up 24.25 points. Each of the major indices fell yesterday.
Technically, looking at the daily chart above the price is moving above the 61.8% of the move down from the November high at 113.241. The swing high from early October comes in at 113.433. A topside trend line cuts across at 113.54. Those are the next targets on that chart.
Drilling to the hourly chart below, the pair moved above the 200 bar MA on the 4-hour chart yesterday. That MA stalled rallies on Monday and last Thursday too. After consolidation above and below the 200 hour MA, the pair has been able to break away from that MA line (green line at 112.97) and push above the 61.8% of the move down from the December 12 high at 113.089. The pair based against that retracement level before making the next run to the upside. The 113.089 is now close risk for shorts. Stay above is more bullish. Move back below and the waters could get more corrective for the pair. A wider risk level for longs would be the 112.972 level where the 200 hour MA is found.
