Forex technical update: USDJPY corrective action moves to NY session highs

Technical Analysis

Author: Greg Michalowski | usdjpy

100 day MA attracted buyers/profit takers

As per the earlier post (SEE USDJPY has a key technical reason to think a low is in for today), the 100 day MA did in fact stall the fall. The low at 112.05 with the 100 day MA at 102.03 subsequently led to earlier buyers at 112.09 on the next dip. 

Since those lows, the price has inched higher with the pair reaching  a new NY session high at 112.34. The 38.2% of the day's range is 112.331. So the corrective move is not running away. The price also remains below the 200 bar MA on the 5-minute chart at 112.377. A move above both technical levels are needed to increase corrective potential.

Looking at the daily chart below, the price rise has also taken the price back to the underside of the broken trend line.  That too makes this area a key barometer for both the bulls and the bears. Move above is more bullish. Stay below and a retest of the 100 day MA is not out of the question.  

The holding of the 100 day MA was important technically, but the breaking of the trend line on the daily was also important.  So key level for the pair.  

PS Yields continue to help the USDJPY.  2 year is up 3.6 basis points. The 10 year is up 6 bp. The 30 year is up 6.8 bps.

Stocks are also leading to a flight out of the safety of the JPY (JPY pairs are all moving higher). The Nasdaq is leading the way up 1.33%. The S&P is up 0.64%.  The laggard is the Dow up 0.23%. The rotation out of tech heavy Nasdaq into the big cap stocks of the Dow, seem to be seeing some reversing. 
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose