Better US data and a break technically propels the USDJPY higher
The US housing data was good news for a change. Moreover, it helps the Fed officials who have been harping that "all will be ok in Q2", all the while the data has not been so ok. Suddenly, a bullish break from the better report on housing has helped the fundamental story - or at least gotten it going in the right direction.
For the USDJPY, the pair has also gotten a break technically. Looking at the 4 hour chart, the pair has a succession of lower highs which formed a line trend line. The price of the USDJPY has been able to break above that line at the 120.28 level after the better data and extend up to 120.45. The pair has slowed the rise a bit but remains above the broken level (RISK for longs now). Stay above the level and the pair can work on getting a higher high. THe May high comes in at 120.50 and that becomes the next bullish hurdle for the pair if the bulls are to keep and extend control. The April high at the 120.837 would be the next target.
On the downside a move below the 120.23-28 would not be welcomed. Looking at the 5 minute chart the 38.2% to 50% retracement of the last move higher comes in at the 120.239 to 120.289 area. Yet another reason to expect buyers on dips against this level (risk defining area for longs too).
