Reverse earlier declines as flows into the greenback
The USD has been moving higher and the flow of funds has stopped the Pavlovian "safety of the JPY" trade in the process. The JPY is now weaker versus US dollar on the day after being the strongest currency at the start of the NY session.
Gold is falling sharply with the precious metal down $53 or -3.18% at $1582.80. The US debt rates are not helping with the 10 year down -17.8 basis points, but I can also imagine corporate debt is not doing as well as the default risk increases and those rate moves diverge.
Technically the price did run into topside resistance near the 38.2% retracement and a topside trend line at the 105.39 and 105.47 levels respectively. The 200 hour moving average was not far away at 105.623. That extreme is now upside resistance
On the downside, the pair traded the London morning session below its 100 hour moving average at 104.024 and a topside trend line. The run to the upside broke above those levels. The trend line currently comes in at 104.31. The 100 hour moving average comes in at 104.024. A move below each would tilt the bias back to the downside.
So buyers are taking control, but the pair remains between resistance above and sport belo. Nevertheless, moving above the 100 hour moving average and trend line gave traders the they go ahead to run toward resistance levels. The extremes on the support and resistance on the downside and the upside have been defined.
