Topside trend line at 110.945
The USDJPY is trading at new session highs at 110.869. The pair is getting a boost from the higher YoY CPI data. Yields in the US are higher with the 5 year up 3 bps and the 10 year up 2 bps (were a little negative at the start of the day). The stocks are also higher with the Dow projected to rise by over 100 points and the Nasdaq up about 36 points.
For the USDJPY, the pair reached a high of 110.88. There is a topside trend line on the hourly chart at 110.95, which is close to the natural 111.00. There may be some cause for pause from traders leaning against the area, but the bulls are the dominant.
The pair last week, dipped below the 100 hour MA and (blue line currently below at 110.18) but could go very far. When the price moved back above the 100 hour MA early Monday, the trend higher continued. Yesterday, the 110.328 level stalled falls and created a nice floor to base the next move higher.
Bulls in control but overhead resistance looms.
