100 hour MA looms above....

The USDJPY is higher today. Yields are higher by about 1-2 bp helping the bias. Stocks are higher with the S&P up testing 2300 - up 0.24%. Nasdaq is up 0.32%.

Technically, the pair fell below the 111.98 level yesterday. That was the 38.2% of the move up from the November election low. That break took the price to a low in the Asian session at 111.58. The recovery began and when the 111.98 level was broken to the upside today, the momentum higher began accelerate.

The move higher today has taken the price back toward the 112.51-56 area which was swing lows back in January (yellow area). The last 4 days has admittedly seen the price trade above and below that area, but the swing levels still have some pull.

In addition to that area, the 100 hour MA is coming into the picture at 112.609 (and moving lower). That will also be a key clue for bullish/bearish as the day progresses. On employment day last week, the price moved above the 100 hour MA but was quickly reversed. The MA is lower now - so that is an easier upside hurdle. Nevertheless, a move above - and staying above - would be more bullish. Trend line resistance is also close to that MA line. That increases the levels importance.

Key test for the buyers above 111.98 and for those short looking for resistance to hold and the bearish momentum to continue.