Better ISM non-manufacturing data pushes the price through the 200 day MA
USDJPY has shot back to the upside after the Non-manufacturing ISM index beat expectations.
The price moved from 108.84 to a new high for the day at 109.137 (trading at the highs now).
That run took the price above the 200 day MA at 109.00. That level is now close risk for the pair.
On the FOMC day last week, the price spike higher but quickly reversed back below the 200 day MA. Traders will not want to see the same pattern happened today.
On the topside,the underside of the broken trend line comes in at 109.23. The high from last week reached 109.281
US yields are helping the upside momentum as is a tumbling gold market. The 10 year yield is up at 9 basis points now at 1.867%. The 10 year yield moved above its 100 day moving average at 1.80% today.
The price of gold is down $23.7 or -1.57% $1486.
US stocks are trading mixed with the S&P down -0.07% and the Nasdaq up 0.03%. The stock market may be getting spooked by the sharp rise in yields seen over the last few days of trading. That negates some of the Goldilocks feelings in the market perhaps. . Remember, the major indices are also trading at or near all-time high levels. There may be some apprehension to extend higher.
