Moves toward the 61.8% retracement at 110.859
The USDJPY is moving further away from the 200 day MA at 110.17 and is moving toward the next target at the 61.8% of the move down from the November high. That level comes in at 110.859. The high just reached 110.79.
The Philly Fed Manufacturing index was a big beat coming in at 34.4 vs 21.0 expected (and last months 23.2). 10 year yields are up about 1 bp at 3.10% although it was higher at 3.12% earlier.
Looking at the 4-hour chart below, the pair had peaked the prior two weeks at the 110.02 area. That level was broken on Tuesday and retested yesterday and again today. The level held and was a clue for the bulls.
Moving above the 61.8% would look toward the topside trend line at 111.34 as the next key target on the 4-hour chart.
