USD/JPY eyes stops above January highs

Since it has established a foothold above the 200-day moving average at 78.03, USD/JPY has set its sights on the 78.28 high posted in late-January.

Stops are seen above that level but exporter offers are seen toward the 78.50 level.

I hate to get bulled up on USD/JPY at this time of year. Historically, late February and early March is a period of JPY strength at he end of the Japanese fiscal year, which ends March 31.

Trend followers will take comfort that the 10 and 21-day moving averages are crossing bullishly but they gave off a false buy signal back in late January before the buck slumped all the way back to 76.00.