Overhead resistance is stalling the USDJPY in early NY trading

Technical Analysis

Author: Greg Michalowski | usdjpy

Trades between swing areas in the pair

The USDJPY has moved higher helped by risk on flows (and flows out of the relative safety of the JPY).  The run higher has pushed the pair to a topside resistance cluster defined by the:
  • 200 hour moving average at 107.398
  • 50% retracement at 107.470
  • swing levels between those 2 areas (see blue circle numbers in the chart below).
Trades between swing areas in the pair

The high price reached 107.434 and has backed off a bit. The next close support level come 107.292. That was a high from October 3rd. Yesterday, the price stalled on a corrective move higher at the same level.  Today the price stalled broke and has so far held the level.  The market seems to be focus on the level as a bullish above and bearish below barometer.  Breaking below would ruin the bullish rhythm a bit.

US stocks are higher with the Dow now up about 193 points. The S&P index and NASDAQ are also higher (S&P of 23 points.  NASDAQ up 68 points).  US yields have retraced a bit. The 2 year yield is now unchanged, the 5 year yield is up 0.8 basis points. The biggest move is in the 30 year is up 2.3 basis points.  

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