...and looks to test Friday's high (highest level since June 24)
The USDJPY is trading at a new session high and looks to test the high from Friday at the 106.31 level. That was the high since June 24.
The USDJPY moved above trend line resistance at the 105.75. Earlier the fall below the low for the day failed.
The move higher was helped by stocks moving to the upside. The stocks are off the highs. So be cautious. Selller may lean against the high from Friday. A move back below 106.00 will give sellers some confidence. The Asian Pacific high stalled at 106.00. Key level.
Looking at the 4-hour chart, a close resistance level comes in at 106.235. Looking back to May, the price of the USDJPY held support against the 106.23 level and 106.42. In Mid june, that support was broken. Since that time there has been one bar that traded above the 106.42 level and two bars above the 106.23 level (one was on Friday on the move to 106.30. So that level - 106.23 - is a key level to eye as well.
Adam does point out (before I stomped on him - sorry Adam), that the pair may stay supported on the back of an new stimulus package. That should keep traders cautious.