Trades around the 112.00 level after dip stalled at last week's high
The USDJPY extended to a new high since August 1 early in the Asian session and dipped to a low of 111.748 in the London morning session. That low stalled against the high price from last week's trading. Yesterday that high was busted and ran higher.
The price is looking to retest the earlier day high now at 112.07. A move above will look toward the August 1 high at 112.146. Above that and the pair targets the underside of the broken trend line at 112.34
If you like selling the dollar, sell against the highs and look for a break of the 111.748 to weaken the bulls bias.
I will say, the range for the USDJPY is 33 pips. That is well short of the 61 pip average range over the last month. So there is room to roam on a break. Can it break the highs? Or does it fail and put sites on the lows.
- US stocks are up marginally.
- US yields are now up about 2 bps across the board. That tends to be more supportive of the USD.
- EURJPY and GBPJPY and AUDJPY are off highs as the USDJPY trades toward the highs. For the EURJPY, the high today stalled near the 100 day MA level. Sellers leaned against the key technical level.
