Tests Daily chart trend line and eyes December high
The USDJPY is higher being supported by:
- Technical break
- Record US stocks
- Modestly higher rates
Technically, the USDJPY on the hourly chart above, tried to extend lower and away from its 100 and 200 hour MAs (blue and green lines) this week. Today, the price early in the Asian session fell below the 109.33 area which has been a minor floor over the last few days of trading. However, that break failed and when the price rotated higher, and then broke back above the 100 and 200 hour MAs (blue and green lines), the sellers turned to buyers, and the price raced higher. In the process the price has moved above the Friday high at 109.532. That area is now close risk for the longs (currently trading at 109.60).
On the topside, the recent highs start to show up at 109.628, 109.672, 109.70 and and the high from December 2 at 109.723.
Taking a broader look at the daily chart below, the price is not only running into the highs from December (the high price reached 109.723), but also a topside trend line extending all the way back to November 2018 which cuts across at 109.64 today. The high price has so far reached 109.62.
Sellers may be starting to lean against the area. A break above the 109.64 should see some more probe. Keep the 109.50 area as close risk.
The S&P and Nasdaq trade near all-time intraday highs:
- S&P index is up 9.5 points or 0.29% at 3232.87. The high price reached 3233.02
- NASDAQ index up 33.18 points or 0.37% at 8986. The high price reached 8990.22
US yields are marginally higher:
- 2 year 1.635%, +1.4 basis points
- 5 year 1.728%, +1.9 basis points
- 10 year 1.905%, +0.5 basis points
- 30 year 2.334%, +0.5 basis points
