Looking to move below floor area.
The USDJPY is moving below a support floor area around the 113.13 level.
The pair has been waffling higher and lower over the last 8 or so hours of trading. The high today has stalled ahead of resistance at the 113.60-75 area (yellow area in the chart above). Yesterday, the pair stalled at the 100 hour MA (blue line in the chart below). That stalled the rally and helped give the pair more of a bearish bias after holding that key MA level.
Interesting of note today is the US yields are higher with the 10 year at 2.4332% - up 3.5 bp. The high yield is 2.443% The low 2.386%. The USDJPY has been reacting to yields. That is, when yields move higher the USDJPY goes higher and visa versa. We are higher today, but kind of disconnected at the moment. Stocks today are higher as well (with the S&P up 3.06 points and the Nasdaq up 12.85 points). Finally better Markit ISM has not helped the USD.
Existing home sales and Richmond Fed due out at the top of the hour.