Base against the 200 bar MA on the 4-hour and 61.8% retracement
The price of USDJPY has recovered more of the sharp fall. The pair is trading at the highest level in the London and New York sessions and is approaching the 113.00 level. The hundred bar moving average of four hour chart is currently at 112.978. The 200 hour moving average comes in a 113.034. The 38.2% retracement of the move up from the December 15 low is between those levels at 113.018. We currently trade at 112.94.
I would expect sellers around the 113.00 area as traders trade against the resistance area. A move above the 113.034, however, would likely lead to those traders giving up on that idea. We will see.
The better Chicago purchasing managers index is helping the pair recover (the dollar to recover).
Yields in the US are also a bit higher. The 5 year note is up 3.2 basis points. The 10 year note is higher by 1.45 basis points.
US stocks are trading near unchanged levels after being higher in earlier trading.
