Bulls stay in control

The USDJPY is making new session highs and trades at 111.00 for the first time since December 28th. See earlier post "New highs for the USDJPY. Looks toward the 111.00 area". The price has reached the 111.00 area.

USDJPY eyes the 200 day MA at 111.26 on a break above 111.00.

Looking at the hourly chart above, the pair is testing a topside trend line at the level. A move above and the pair will be trackiing to the 100 day MA at 111.268. The price last traded above the 200 day MA on December 27th.

USDJPY is trading at the highs and testing the 111.00 level

The magnetism of the 200 day MA seems too alluring. However, as we head to the end of the day, there may be risk focused traders who will use the trend line as a level to lean against with stops above.

Helping the USDJPY today are stocks. The S&P is moving further away from the 200 day MA at around 2744 (low reached 2748). The Nasdaq did test and hold below its 200 day MA at 7462 (high reached 7461). The price is off the highs at 7442 currently, but off the lows as well at 7413.

US yields are also higher with 2s and 5 year notes up 3 bps and 10 year notes up about 2 bps.