The USDJPY has moved higher after the 7.6 magnitude earthquake struck the East Coast of Aomori Prefecture. Tsunami warnings and advisories are currently in effect (red and yellow areas on the map below).
The USDJPY has pushed higher on the news, helped by rising U.S. yields, with the 10-year up roughly 4 basis points. On the hourly chart, the pair has now broken above its 200-hour moving average at 155.643, a level that capped upside earlier in the day. It has also moved above the top of the swing area at 155.754, with today’s high extending toward 155.91.
On the topside, the next key target comes in at 156.17 — last week’s high. A break above that level would open the door toward the November 26 high at 156.736.
For traders who bought the breakout (or entered earlier), the key risk now is a move back below the 200-hour moving average, currently near 155.64. Falling below that level would weaken the bullish momentum in the short term. Beneath that, the 100-hour moving average at 155.29 becomes the next important downside target. A break below the 100-hour MA would tilt the bias firmly back in favor of the sellers and hand them greater control. It's
