HMMM
Typically a rise in stocks and in yields leads to a higher dollar and a move lower in the JPY (higher USDJPY).
We are not seeing that in the USDJPY pair today. In fact the pair is just up 4-pips at 111.45 currently.
Having said that, the pair did just reach a new high at 111.546, eclipsing the London morning session high at 111.522, but could not sustain any momentum.
HMMMM.
Technically, the bias still remains in the favor of the buyers. The lows for the day stalled just ahead of the 100 hour moving average (blue line in the chart above) currently at 111.249. If the sellers are to take more control getting below that moving average level (the 200 hour moving averages just above it at 111.333) would be a tilt back in the favor of the bearish direction.
So although there is some reluctance to the upside, the buyers do have the edge from a control perspective on the holding of the hourly moving averages.
On the topside, watch the 111.633 to 111.703. Get above it and the high from yesterday at 111.78, and a run toward the September high at 112.074 would be the next major target.
PS. US stocks are trading near highs:
- Dow is up 424 points or 1.23%
- S&P is up 52.33 points or 1.2%
- NASDAQ index is up 190 points or 1.31%
In the US debt market, the 10 year yield is up 3.0 basis points at 1.554%. That is just off the high 1.561%.
