USDJPY moves back to unchanged despite early stock gains

Technical Analysis

Author: Greg Michalowski | usdjpy

Retraces despite rise in stocks

The stocks are opening higher and typically, the USDJPY moves higher on the back of gains (Europe is up too). But the pair is moving back to unchanged after earlier gains in the pair stalled.  Will the lows hold?

Retraces despite rise in stocks
The high for the day reached 110.646. That was within 10 pips of the key 100 week MA at 110.75 currently.  

The price of the USDJPY fell and closed below the 100 week MA during the week of December 23rd and has not been to the level since that break.  A move back above would be more bullish.  Today, sellers have been anxious to sell against the longer term technical level. PS the 61.8% of the move lower comes in at 110.81 too.  

USDJPY price approaching 100 week MA at 110.75.
A snapshot of the US stocks are showing:
  • S&P up 20.87 points or 0.77% at 2730.70
  • Nasdaq up 56.9 points or 0.77% at 7365
  • Dow is up 220 point or 0.88% at 25274
The gains are in response to budget deal.  
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