Higher yields/stocks rebound help
The USDJPY is back above the 100 day MA a day after a break above that same MA failed yesterday. A reprieve for the bulls.
Higher yields and a recovery in the pre-market stocks are helping. The USD is the strongest currency today.
Technically, the price decline yesterday in the NY afternoon session (helped by falling stocks), did see the price move to test a lower trend line on the hourly chart above. That line held support (see red circled numbers in the chart above).
Holding gave the buyers the 2nd shot and the rebound has been able to show more momentum above the 100 day MA. A new high at 109.26 going back to February 9th was made. What is telling, is the correction lower in the London session stalled ahead of the 100 day MA. That solidifies the 100 day MA as a key level at 108.938. . The lower trend line comes in a little lower at 108.89 currently and moving higher. Call those two tools the risk for longs now. Stay above is more bullish.
Targets?
If you stay on the hourly chart, the higher channel trend line extends up to 109.62 currently and moving higher (not shown but imagine the level on the top trend line).
Looking at the daily chart below, the 50% of the move down from the November swing high comes in at 109.664. That is near that hourly trend line level. The 200 day MA at 110.26 is another target.
SUMMARY: The buyers from yesterday turned to sellers when stocks fell and the price fell back below the 100 day MA.
Today, the buyers have a reprieve on the re-break of the 100 day MA and the ability to hold the level on the correction in the London session. The 100 day MA MUST hold today.
On the topside, the 109.66 area (50% and topside trend line on the hourly) is the next target. Above those levels and traders will be eyeing the 200 day MA at 110.26 (PS the 110.00 level will also be in play I would image)
