Stocks and yields tick up
The better-than-expected ADP report and coronavirus drug has pushed the USDJPY to a new session high and further away from the 61.8% retracement at 109.519. The high price reached 109.81. The old high for the day came in at 109.72. Stay above the 61.8% retracement keeps the bulls in control. Closer risk intraday, would be the 109.65 level. The price has traded above and below that level today, but it was teh swing highs going back to January 23 and January 24.
On the topside, the market will be looking toward the 110.00 level. Above that swing highs at 110.09 and around 110.21 and the high from January 17 at 110.283 are targets.
The USDJPY tends to do better when stocks rise and bond yields increase. In pre-trading for US equities, the futures are implying a gain of 32 points in the S&P index. The NASDAQ index is tracking a 120 point gain currently. In the US debt market, yields are also higher (by 5 bps)
