USDJPY moves to a new session high. Tests the high from Monday

The 10-year note auction was sloppy and had spotty demand with a 1.8 basis point tail. As a result, yields have moved a little higher. The 10-year yield is still down -3.9 basis points at 4.615%, but well off the lows up for the day as well at 4.544%. The 2-year yield is up 1.9 basis points of 5.003%.

Looking at the hourly chart of the USDJPY, the price has moved higher off the higher yields and looks toward the high for the week at 149.24. Technically, the price is also moving away from its 200-hour moving average at 149.07. The rise has taken the price to 149.22 just short of the Monday high at 149.24. Moving above that level should open a door for a potential run toward 149.47 – 149.545 (see red numbered circles and yellow area on the chart above) all.

Close risk is now at the aforementioned 200-hour moving average. Stay above that level is more bullish. Moving below the level and the price action returns more to a neutral bias.

This article was written by Greg Michalowski at Source