50% of the move up from the August 2016 low stalls the fall at 1.0908
The USDJPY fell to the 50% retracement of the move up from the August 2016 low at 109.08 (the low reached 109.11 actually) and has seen a modest bounce. The range for the day is a modest 51 pips. That is narrow vs the 22 day average of 90 pips. There is room to roam on a break.
The high was in the Asian session at 109.63. That was near a swing high from yesterday's afternoon trading (see 5-minute chart below). The 38.2% of the trend move down from yesterday comes in at 109.644. A move above that level should find more buyers and extend the range....
PS.... we have just scooted to new session highs. The buyers are making a play for further gains. The 109.809 is the 50% of the move down from yesterday's high. I would expect sellers to show up against that risk level. Bond yields are a bit higher in trading today with the 10 year up 1.7 bp to 2.1624%. That is contributing. However, the sentiment in the debt market is not bullish on inflation. US stocks may also be helping JPY pairs (seeing GBPJPY and EURJPY move higher). The S&P is up about 0.17% in early trading and the Nasdaq is up 0.31%.
