Stocks higher seems to helping to push up the JPY pairs (selling JPY)
A Pavlovian reaction on big moves in stocks, can be a move out of the JPY with buying of USDJPY and the JPY crosses.
Looking at the low to high trading ranges for the major currency pairs below, the JPY pairs area all trading near highs for the day. A lot of those gains has been seen over the last few hours of trading.
Looking at the USDJPY, the pair has extended above the 38.2% retracement 104.42 and a topside trend line on the hourly chart at 104.45. That is close support now for the pair. The next target comes in at the 50% retracement of the move down from the November 11 high at 104.659. The high price from last week reach 104.756.
Looking at the EURJPY below, the pair has raced above the swing high from November 9 and the swing high from yesterday's trade near 125.128 (there were a number of swing highs over the last 2 months between 124.99 and 125.128 - see post from yesterday). Moving above is more bullish. More recently, the price has also moved above a topside trend line on the hourly chart at 125.34. These levels are now close risk for the pair. Stay above is more bullish. Move below would likely tilt the bias back to the downside.
