200 hour MA and trend line held support
The USDJPY has rebounded higher after testing the 200 hour MA and stalling (at 113.43 level - see earlier post). The price has moved up toward the resistance area defined by the 100 hour MA (at 113.919 currently) and the prior swing highs/lows at the 113.807-883 area. A move above will be more positive for the pair.
The USDJPY has rebounded as the yields on treasuries remain near the lows (more bearish for the USDJPY). On the other hand the US stocks are higher with the Dow, S&P and Nasdaq all trading near highs. The Dow is making new highs for the 12th times since the election. The transportation index is also trading at a new record high. Warren Buffett lit a fire under that index when he reported that he had invested in 4 of the top US airlines (Delta, Continental, Southwest and American Airlines). The record is the first record in two years for that index.