Plays follow the leader up until a point
The USDJPY played follow the leader - moving lower as the EURUSD soared, but volatility was definitely much lighter (only 70 pip range today). The pair was more of a meander lower vs. the EURUSDs surge higher.
The move lower lasted until the price caught up to the 200 hour MA (green line in the chart above) where the pair bottomed. Yesterday the price stalled at the 100 and 200 hour MAs and moved higher. Once that level was touched, the price has since moved back above the 100 hour MA and broken trend line. The pair may be now re-focused on things like the US employment and the Fed meeting (imagine if the NFP comes out flat tomorrow with revisions to prior months? Oh my what a mess it will be).
Anyway, Yellen is still scheduled to testify about monetary policy before the Joint Economic Committee, in Washington DC at 10 am. Yesterday, she spewed her guts on the economy and seemed ready to go (without explicitly saying it). That should keep the pair supported a bit.
