The USDJPY has moved sharply higher in trading today helped by Japan’s CPI data and expectations that the Bank of Japan will keep their yield curve control unchanged next week and the Federal Reserve will raise rates by the expected 25 basis points. This week the USDJPY is up around 2%.
Technically, the price raced through the 50% midpoint target of the move down from the end of June high. That level comes in at 141.149. I am looking for support against that level on the dip. Hold that level and get back above the 141.43-141.47 area and a move toward the 61.8% retracement 142.07 would be targeted. The high price today reach 141.948 before rotating back to the downside. That too will be a level to get above.
The move today is already impressive (range of 221 pips vs 128 pip average over the last 22 days – about a month of trading). But we have to respect the trend move higher today. The 50% will tell us how bullish the buyers are today. Be aware.
This article was written by Greg Michalowski at www.forexlive.com. Source