Stocks/US yields are higher and helping
As the time clicks toward the US stock opening, the USDJPY is ticking higher as well. The stock futures are implying stronger gains with the Dow implying a 240 point rise and the S&P is implying a 25 point rise. In the US debt market, the 2 year is up 8.8 bps. The 10 year is up 5.8 bps. All typically is good news for the USDJPY.
Looking at the 4 hour chart below, the pair bottomed near a lower trend line at 107.755. The low today reached 107.878. The move higher is still modest. The high from yesterday reached 108.447. The 38.2% of the move down from high last week is up at 108.635. The 50% comes in at 108.88.
Drilling to the daily chart, the 108.49 was the low from January 31, 2019. The high yesterday fell just short of that level at 108.447. The 50% of the move up from the January low comes in at 108.63. That is in line with the 38.2% from the 4-hour chart. The underside of a broken trend line comes in at 108.705. Those are upside targets that traders will look to on more upside momentum today.
