The USDJPY moved lower in the Asian session and into the early New York session. Yields were lower and the price drifted. However, the low price stalled against the 50% midpoint of the May trading range at 135.63, and the price rebounded higher.
US retail sales were mixed but the control group was higher. Industrial production came in better than expectations. Yields have moved higher with the 2 year now up close to 5 basis points to 4.052% as Fed talk is starting to be heard by traders a little bit more (and seeing a reaction). Concerns about the debt talks is also adding to woes in the US debt market.
Looking at the hourly chart, the price has now moved above the high price from yesterday near 136.33. The next target comes in near 136.55. Moved above that in could see traders start to look toward the 137.00 level. The 200 day moving average is near that level at 137.053. Back on May 1, the price extended above the 200 day moving average for the 1st time since March 8 and closed above the 200 day moving average on that day. But the next day the price rotated back lower and has not returned since then. There is only been one closing day above the 200 day moving average in 2023. Key level.
Meanwhile in Washington, House leader McCarthy is telling Republicans things could get rough now but to stay together.
