Moves higher on stronger opening. Bond yields higher. Can they be maintained?
The US stock market will be toying with the Dow20K on the opening. If it were to open right now, that level would be broken. Put the champagne on ice. The corks should be popping (I know, "Big Deal").
Bond yields are also moving a bit higher. The 10 year yield is trading at 2.493%, just short of 2.50% resistance. Last week, the high yield made it to 2.51% before coming back down. The dollar has been liking rising interest rates. A move back above 2.50% will be eyed.
Technically, the USDJPY is up testing the 113.60 level which is the lower of a resistance area that extends up to 113.78 (see yellow area). The area has a number of swing levels. Now we went above the level at the end of yesterday and into the Asian Pacific session, but notice how the next upside target against the 200 hour MA (green line) stalled the rally. You would expect that too. The subsequent highs, stalled near that 113.78 level.
The price is in that area now and looking toward a test of the 113.78 level. The market looks positive/bullish. However, understand that the level should give cause for pause and then, that 100 and 200 hour MA looms. That resistance may be daunting but it could also be a spring board for another surge higher. Nevertheless, as traders they represent the challenges for the bulls and the bears. The price action will tell who is the winner.
For now, here comes Dow20K (I think) and 10 year 2.5% (I think). The question for the USDJPY is can those levels remain broken, and in turn keep the USDJPY running higher?
PS. Keep the 114.515 level in mind. That represents the 100 week MA. The last two weeks has seen the price trade above and below that MA level, but closed right near the level (closed at 114.47 and 114.53 the last two weeks). We should move away from that MA line at some point. A move back above would be bullish (leaving a tail at the lows again).
