Yields little changed today
The USDJPY stalled against the 200 bar MA on the 4-hour chart yesterday (see green line in the chart below).
Today that MA line was broken in the Asian session and held support against the level on the correction lower.
There has been a spike higher in the early NY session on Mnuchin tax comments) which just took the price to a new day high The range for the day was extended to 76 pips in the process (from 54 pips when NY traders entered). The high reached 111.73. The 50% of the move down from the March 10th high (not shown) comes in at 111.81 and perhaps traders were anxious to lean against that level. The price quickly moved back lower ( low reached 111.16).
The price action is back and forth. We are higher on the day and above that 200 bar MA on the 4-hour at 111.068, but the 50% at 111.81 looms above (and today we stalled comfortably below that level).
We trade in the middle of the support against the 200 bar MA on the 4-hour chart and the 50% a 111.81.
If we head higher, keep an eye on 111.62. That is where the trend line on the 5-minute chart comes in. If the price cannot get above that level (sell level), the market may be a bit overextended for the time being. If we move above, that 111.81 still is key resistance that sellers should put up a fight.
On the downside, the continued holding to th 200 bar MA on the 4-hour chart makes it a level that if broken, should solicit more selling.
US stocks opening with modest gains. US bond yields are little changed from yesterday's closing levels.
