The Red Box below the 107.53. The Green Box is above that high level
If you look at the hourly chart of the USJPY, there are basically two boxes of trade activity since June 20. The Red Box, is from 107.557 and below. The low of the Red Box, reached 106.773 on June 25.
The Green Box is from 107.53 and above. The high of the Green Box reached up to 108.527 (on Monday). The 107.53-557 area is the DMZ zone.
The lows today, reached into the DMZ zone and we are now seeing a bounce away from that level (new London highs being printed now). IN the process, the price is back above the 200 hour MA at 107.706. That is now a close risk level for the intraday buyers. Targets above include the broken 38.2% at 107.857 level THe 100 hour MA and 100 bar MA on the 4-hour chart come in at 107.988 (call it 108.00).
US yields are off low levels and providing a little lift. The 2 year is unchanged.The 10 year si down -0.8 bps at 1.9652%. The low reached 1.9378% earlier in the day.
