Bull flag?
Last week, the USDJPY trended higher into Friday. However, there was a Friday correction after the pair reached the highest level since January 9th at 112.796. The high for 2018 is up at 113.38. The 200 week MA is before that at 113.21. Be aware of the 200 week MA on further upside momentum this week.(the 61.8% is also at that area - see chart below)
Drilling to the hourly chart below, the pair trades between a lower and higher trend line (bull flag?). The topside trend line comes in at 112.46. The lower trend line comes in at 112.25. A move above the topside trend line should be more bullish (look from momentum).
Although the bull flag formation might favor the upside (I guess it is a pennant), there could be a break of the lower line too. That would disappoint the buyers and should lead to a move toward the early day low at 112.16. That was also near a correction low from Thursday's trading.
US 2 year has reached the highest since August 2008 (high reached 2.607%, up 2.5 bps).
The 10 year yield is also higher at 2.858%, up 3.1 bps.
