Sellers near the 200 day MA are giving up
The USDJPY did finds some sellers near the 200 day moving average at 108.858, but they could not push the price to 5 to the downside. As a result, the last few hours have seen a move back above that key moving average level and a further extension to new session highs. The sellers are giving up. The buyers are winning.
Continuing to help the overall tone in the pair are gains in stocks. The Dow industrial average is now up 200 points (again). The S&P index is up 0.77%. And the NASDAQ composite index is up 0.66%. Although those levels are off the highs, they are moving back higher after a modest intraday correction.
Also helping our yields. The 10 year yield is up 6.5 basis points to 1.781%. The 2 year yield is up 4.6 basis points to 1.585%.
For the USDJPY the next upside target comes in at 109.072. That is the 50% retracement of the move down from Monday's high. Just above that is the 200 hour moving average at 109.107 and the 100 hour moving average at 109.151. Risk now for longs is the 200 day moving average at 108.858.
