Nikkei 225 up 0.82%. Moves toward key hourly moving averages.

The Nikkei 225 is trading to new session highs and in the process is approaching key hourly moving averages.

The current price is up 0.82% at 32517.77. Above at 32614.09 is its 100-hour moving average (blue line in the chart above). Above that is the 200-hour moving average at 32761.46 (green line in the chart above). Moving above each would tilt the bias back to the upside.

Yesterday, the low price reached 31830. That was near the swing low from July 12 at 32791. The inability to move below that low gave the buyers the go-ahead to push to the upside.

Today although household spending fell -4.2% year on year, the monthly number was better than expected at 0.9% versus 0.3%. Moreover, the current account surplus was higher than expected as well. That is helping to support the stocks.

Meanwhile, the USDJPY is running to the upside (along with other JPY crosses). The pair earlier today rose above its 100-hour moving average and has been stepping higher since then. More recently, the price has moved above Friday’s highs near 142.885. That is a close risk level for traders. The next upside target comes between 143.43 and 143.538 (see chart below).

The EURJPY is also breaking higher. Looking at the hourly chart, it is approaching swing highs from last week near 157.50. Break above that level and traders will start to target the swing high area between 157.90 and 158.04.

This article was written by Greg Michalowski at Source