Watch the video. It explains it all.
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The USDJPY moved up to a key swing area yesterday between 142.234 and 142.658. Within that area is the 61.8% retracement at 142.492. Yesterday the high price moved to test the high of that swing area and found willing sellers. The price came off modestly into the close.
In trading today the price was able to extend above that level and then based against the area before moving to the upside of the last few hours of trading (see hourly chart below and the video). The technical break to the upside has been supported by higher US yields. The US 10-year yield is now up about 6 basis points while the 5-year yield is up about 5 basis points.
The next target area on the pair comes between 143.439 and 143.538. Move above that level and the door opens for a move toward what was a floor area going back to late June and early July between 144.12 and 144.22.
For buyers looking for more upside, it would take a move back below the 61.8% retracement at 142.498 (and stay below) to hurt that bullish bias. Holding 143.00 would be a natural level of support that may influence trading in the short term today. Stay above keeps the buyers in full control.
This article was written by Greg Michalowski at www.forexlive.com. Source