Technical support holds
The "risk on" trade took off after Pres. Trump's remarks to the nation eased geopolitical fears. The USDJPY race higher and trades above the 109.00 level (high reached 109.10 - we currently trade at 109.04).
Helping as well was the technical support holding against its 200 day moving average (this was outlined in the earlier post). Holding the support against the key moving average kept the buyers in control.
Targets on the upside will look toward the 109.174 -20 area. Above that 109.31 (that was also the swing high going back to August 1 - see daily chart below), 109.53 and the December highs at 109.678 to 109.723 (see daily chart below).
Another key level from the daily chart comes in at the 109.50 level. that is the downward sloping trendline (see chart below
The bias is in the buyers favor, but there area hurdles above that will need to be broken.
In addition to taking clues from the technicals , the USDJPY will be taking other clues from things like stocks and yields. So far they are pointing to the upside (stocks higher/yields higher) now that the decks have been cleared from a tit-for-tat perspective between the US and Iran.
Technically, it would take a move back below the 200 day moving average to tilt that bias back to the downside.
