The USDs run higher verse the JPY is continuing with the price now moving above its 100 day moving average at 133.483. THat is the first break since March 10. The price is also extending above last week's high price at 133.75 and the 50% midpoint of the move down from the March 8 high. That level comes in at 133.769. The high price just reached 133.824.
Prices are over bought a bit, but with London and Europe out of the picture today, trading conditions are lacking liquidity which could lead to more volatility but also potentially bigger moves. More momentum above the 50% retracement would have traders looking toward the 134.000 level as the next natural target.
US yields are helping to support the pair. The two year yield is back above the 4% level at 4.007%. The level is at the highest level since April 4, when the high-yield reached 4.034%, and takes the price above the 200 hour MA at 3.981%.
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