The pair is making the next step to the upside
The USDJPY moved above its 100 day MA earlier today after stocks started to rebound. Later a topside trend line was broken, but the falling 100 hour MA stallled the rally. After a few hours of consolidation, the price has been able to push even higher and is now taking out the falling 100 hour MA and testing the 38.2% retracement of the move down from the December 26 high at 108.495.
That is the next hurdle to get to and through. The 100 hour MA will be a close risk level (give it a few pips below) for intraday traders. Stay above is more bullish.
If the 38.2% retracement level can be broken, traders will look toward the 200 day moving average at 108.636.
The story remains the same with technicals, rising stocks and positive yields (the 10 year is up 2.1 basis points) all contributing to the better tone. Gold is off the highs but is been stabilizing above the $1561 level. The price currently trades at $1565
