Pair starts to run into overhead resistance
The USDJPY had a volatile time of it yesterday afternoon after Pres. Trump said he would provide the transcript from the Ukraine conversations. Minutes later, the Washington Post released a story saying Speaker of the House Pelosi would launch a formal impeachment inquiry. Those two headllines sent the USDJPY sharply higher and then sharply lower again.
In the new day, however, the pair started to recover and the move back above the 107.183-228 helped to tip the sellers back to buyers (see break after red circle 5 and support buyers at red circle 6). The current hourly bar has now taken the price to new session highs after breaking above a ceiling at the 107.42 level (a close risk level for the longs looking for more upside now).
The pair's rise has now taken the pair into more overhead resistance (it starts to pile on here) with the 38.2% at 107.532, a trend line at 107.57 and the 100 hour MA at 107.613 lined up. The pair has also moved above a swing area at 107.464-513. There is just a lot of stuff above that should make the going a tougher for the buyers.
So we are higher but testing the start of resistance. Watch 107.42 on the downside for signs of buyers on a dip. If can hold, there may be a run higher but if broken, the technical waters are muddy (back to bearish?).
To go higher you would think the stocks have to recover more (they are near unchanged levels), and yields would have to perhaps rise. The impeachment train will also need to fizzle out.
Fed's Evan's is out with a headline from his speech now saying the economy is "quite solid" with "unemployment still low".
