Trades at highest level since December 3, 2018
The USDJPY has made another run to the upside in the early US trading after yesterday's run that saw the pair move above the 2020 and 2019 highs at 112.22 and 112.389.
The price today cracked above the Asian high at 113.481 and has run up to a new session high of 113.782. That took the price above the December 13, 2018 swing high price at 113.704, and to the highest level since December 3, 2018. The price is currently trading back to the downside trading near the 113.50 level. Getting back above the 113.704 level will be eyed if the buyers are to keep the momentum going
Looking at the daily chart on more upside, the swing highs from November 2018 comes in at 114.03 and 114.203. They are the next targets on further upside momentum.
Drilling to the five minute chart below, the price trend yesterday stayed above the 100 bar moving average (blue line in the chart below) for nearly the entire day. In the Asian session today, the price started to trade above and below the moving average, then below the 100 bar MA.
That dynamic took the price down toward the 38.2% retracement of the move higher from a swing low reached in the early Asian session yesterday (last time the price dipped below the 100 bar MA too). That 38.2% retracement level came in at 112.98 right around the natural support at 113.00. The low price today bottom that 112.996 and started to move back to the upside in the European session.
After moving above the moving averages in the European morning session, the the price started to find support near the 100/200 bar moving averages (blue and green lines). The early US session has seen the run to the upside continue, but are now seeing a retracement back toward the Asian session high at 113.481.
What now?
The quick move up and then back down, has the Asian session high as close support. Move below and the 100 and 200 bar moving averages will be targeted at 113.33. Move below those levels and sellers start to take even more control at least on intraday basis.
Conversely hold support here at 113.481, and the intraday bias remains to the upside.
In related markets, US yields remain higher in the short end with two and five year yield up 2.5 basis points. The longer end yields are lower with the 30 year down -3.4 basis points. The 10 year is currently down around -1.0 basis points. The U.S. Treasury will auction off 3 and 10 year notes today.
Dow futures are implying a 59 point gain. The NASDAQ futures are also up about 59 points while the S&P futures are implying a gain of eight points.
The price of crude oil is trading above and below the $80 level after trading as high as high as $81.15.
