The 111.50 high from last week being tested NOW
The USDJPY has moved to new highs as the dollar runs higher. As Adam pointed out earlier, the action from the Fed has put a floor on assets, and that is good for dollar. Now the stocks have not necessarily bottomed, but yields are lower.
Looking at the hourly chart of the USDJPY, at the lows soon after the Fed action, the low tested a trendline but could not get to the 38.2% retracement at 109.683. The price over the last 4 hours has moved higher each hour. The high price just reached 111.499. That was exactly equal to the high price from Friday's trade. The price has backed off a little to 111.30. If the selling continues, the old trend line at 111.05 would be targeted.
Taking a look at the daily chart a move to new highs with look toward the high prices from February at 112.076 and 112.22. Above that is the April 2019 high price at 112.389.
