USDJPY moves higher after US data

Technical Analysis

Author: Greg Michalowski | usdjpy

Based off 100 hour and 200 hour MA today. Back above 100 day MA

The USDJPY fell in early Asian trading on the back of headline news about US/China trade. The price dipped to the 100 hour moving average (lower blue line the chart below), stalled and shot back higher on more positive trade news.   

Based off 100 hour and 200 hour MA today. Back above 100 day MA

The high for the day ran toward an old swing area. Admittedly, that area  (from 107.70 to 107.794) saw price moves above and below the ares from September 24 to October 2, but the price consoldidated near that area too. 

Anyway, there was a run back lower but this time, the fall stalled at the higher 200 hour MA (green line).   

The price, after the CPI and jobless data has sent the price back higher and above the 100 day MA at 107.529.  The high price moved to 107.65 post data.  

Buyers would love to have the price hold the 100 day moving average (I give them the control now).  A more conservative stop level for longs would be against its 200 hour moving average down at 107.336. 

Sellers, could lean versus that swing area above at the 107.70 to 107.79 area. but a move above opens the door for further upside in the pair.  

The Dow futures are implying a -26 point decline( it was at -55 points earlier).  The NASDAQ futures are down -7.0 points and the S&P index is down -1.65 points. They too are  off lower levels in early NY trading.  That is supportive to the USDJPY in general.    

The US yields have moved into the positive territory. The 2 year is near unchanged, but the 10 year is now up 2.2 basis points and the 30 year is up 2.9 basis points. That is supportive to the USDJPY as well.  



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