The USDJPY tests a cluster of resistance at the 111.27-348 area
The USDJPY has moved higher after the higher than expected PPI and the strong claims data (near 50 year lows in initial jobless claims). The run higher has taken the pair into a cluster of resistance for the pair defined by the 100 and 200 hour MA (blue and green lines), swing levels and the 50% retracement. All come in the 111.27 to 111.348 area.
So far, sellers are leaning against the area. However, if there is a shove higher, I would expect more upside momentum. Above sits, the 100 day MA at 111.485. The 61.8% of the move down from last Friday's high comes in at 111.444. That area would be the next target. A move below the 111.27 level and 111.21 (38.2%) would sour the mood of the buyers.
The USDJPY range for the day is 45 pips. That is below the 22 day average at 55 pips.
The numbers were good today and we are seeing the run higher. The question now is can the buying continue and crack through the cluster of resistance. Risk traders are leaning against that resistance and making it more difficult.
