Move above the 50% retracement
The risk on flows that continued and that is benefiting the USDJPY which continues to trend higher.
Looking at the hourly chart above, the price has now extended above the high prices from last week at 109.258. The price is also extended above the 50% retracement of the move down from the January 17 high at 109.284. The high price just extended to 109.357.
Earlier, the price extended above a topside trend line and swing high levels in the 109.12 to 109.165 area (see yellow area). If the price can stay above those levels, the buyers would be more in control. Move below and the trend day waters become a little more muddy intraday.
On the topside the doors open for a move toward the 61.8% retracement at 109.519.
Taking a broader look at the daily chart, above the 61.8% retracement are swing highs from November and December in the 109.66 to 109.72 area. Get above that level and it opens the door for further upside momentum.
