The USDJPY has pushed to new highs in early NY trading continuing the trend that accelerated in the London session. The strong stocks seem to be kicking the pair into high gear. The Dow is up 227 points or 1.38%. The Nasdaq is up 64 points (1.47%) and the S&P is up by 23.10 (1.20%) The push higher today has sent the price back above the topside trend line that contained the pair until the September move to new 6- year highs. That level comes in at 107.63.
The USDJPY moved back above the old trend line at 107.63 on the weekly chart.
Also at the 107.63 is the 50% of the move down from the 110.07 high to the low reached at the height of the Ebola scare last week at 105.19 (and stock market fall – see hourly chart below). Needless to say, this level is a key support level. The move today was all started on the break of the 107.37 ceiling that has contained the price action this week.
The USDJPY is breaking to new highs and looks toward the next target at 108.20
The high has just extended up to 108.10 despite weaker Market PMI data The next target is approaching at the 108.208 which is the 61.8% of the move down from the high. The low to high trading range is 104 pips currently. The average over the last 22 trading days is 96. Compared to other major pairs, the USDJPY is outperforming on that front as the other major pairs are below their averages. The JPY crosses are also fairing well today (see chart below). The higher trading range with the resistance approaching may give the pair a cause for pause. Traders may lean against with stops above as a trade. However, overall, traders who are long on the breaks higher today area the big winners.
The JPY pairs are the most active in trading today.
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