The USDJPY followed the stocks earlier this week. Now with the stocks up again today, the USDJPY rally has been able to continue.
USDJPY on the daily.
Looking at the daily chart, the price is back above the original trend line. That line was broken on Tuesday but the break failed. Today, that old trend line held support at the low. However, the price is off the lows as the dollar weakens a bit in NY trading.
The hourly chart shows resistance near the 200 hour MA (at 119.81. The high did peak at 119.95 earlier today. That break failed). The fall has seen the price fall below the 100 hour MA and the trend line is being tested now.
Let”s face it. The market looks as if it is positioning for tomorrow. The stock market looks good (it tried to go lower but has that big bounce back feeling again), but the impact on the USDJPY looks more toward the look ahead. The 119.229 is the 38.2% of the rebound higher. This and 119.00 are supports now. Look for buyers against this area.
A move back above the 100 hour MA – especially if the market decline slows here – might be good for some further upside. However, need to see the break and stay above the 200 hour MA to get the next push higher.
USDJPY has dipped a bit on the dollar weakness, but the dip should be limited.