106.40 area has an intersection of lines
The USDJPY raced to new session highs after the better than expected revision to 1Q GDP, but the pair got close to an intersection of trend lines at 106.40 (the high reached 106.33), and backed off. The price also is back below the 61.8% of the move down from the March high
Drilling to the 5 minute chart below, the pair has been trending higher in the London session. The catalyst technically was the break above it's 200 hour MA (see overlaid green line on the chart below). Since that break, the price has been marching higher with little in the way of a corrective move.
With the pair coming off the high, keep an eye on the trend lines on the 5 minute chart 106.09 and 105.96. The 38.2% of the trend leg higher comes in at 105.988 and the 50% comes in at 105.88.
For now, the run up got close to resistance and found some profit taking. Stocks have come off their pre-market highs, with the Nasdaq and the S&P now looking like a negative opening.
