The USDJPY is extending above the high from earlier this week at 149.974 for the 2nd time today, but is finding more upside momentum on this break.. The price just reached 150.29.
The price of the USDJPY has traders now focused on other targets above including the 50% midpoint of the move down from the July high. That comes in at 150.757. Above that, the falling 100-day MA comes in at 150.897 and the 200-day MA comes in at 151.277.
Close risk is at the mid-August high at 149.356. The price of the USDJPY has remained above that level in the US session (the low came in at 149.458 in the US session today).
Looking at the hourly chart below, the price over the last few days has seen moves below its 100-hour moving average (blue line in the chart below). In the Asian session today there was another dip below that moving average line but the low could only reach a few pips below the level before bouncing higher.
In the US session today, the low price remained above that moving average level (see blue line on the chart below)before starting its move back to the upside helped by the better US data.
Going forward, it would take a move below the 100-hour moving average (and then 200-hour MA - green line on the chart below at 148.993) to tilt the bias more to the downside. Absent that, and the buyers are still in play and more in control. .
Also helping the upside in the USDJPY today are higher yields:
- 2- year yield 3.982, +4.8 basis points
- 5-year yield 3.907%, +6.6 basis points
- 10 year yield 4.096%, +8.1 basis points
- 30 year yield 4.934%, +9.5 basis points