EURUSD moves below and away from 100 day MA. USDJPY moves back to tthe highs for the week

The USD is heading higher after the US jobs added more jobs vs expectations. Yields are higher. Stocks are lower. Gold is lower (down -$16.50).

Traders are still expecting 25 basis points in July but estimates for 50 bps have been scaled back to 15%.

EURUSD

EURUSD moves below and away from 100 day MA. USDJPY moves back to tthe highs for the week
  • The EURUSD was lower on the day ahead of the jobs numbers, but was trading above and below its 100 day moving average awiting the data at 1.12584. The data has pushed the price below an old swing area at 1.1242-46 to a low of 1.1233. We currently trade at 1.1242 (in that swing area). Traders will likely use the 100 day MA now as a line in the sand for bulls/bears. As long as the price stays below, the sellers are in control. The next target is at a lower trend line on the hourly at 1.1221. Then the 1.1200-02 area will be eyed. The low from June 18 came in at 1.11808. PS> the range for the week rebounded from the 68 pips range last week. Helped by the fall below the 1.1343-47 floor on Monday, and the data today, the price has now reached 138 pips for the week (see post from last week "Let the record 68 pip range in the EURUSD happen. Why? It can only get better next week."HERE).

USDJPY

USDJPY moves to topside trend line/MA
  • The USDJPY moved higher on the news and tested a topside trend line (connecting highs from June 11, June 17 and July 1) at 108.453. The pair also tested the 200 bar MA (green line) at 108.46. The price of the USDJPY has not traded above the 200 bar MA on the 4-hour since May 3rd. Helping the USDJPY move higher is the US yield run higher. The 2 year is up 7.9 bps. The 10 year is up 6.9 bps. US stocks are lower which could be a negative for the USDJPY and may be a reason for the stall at the resistance level. The two technical levels will help determine the bias. A move above (and staying above will tilt bias more to the upside with 108.52 high for the week, and the 50% of the last move down from the May 21 high at 108.715 another target. On th downside, moving back below the 108.256 will weaken some of the bull, in the run higher today.