July 09, 2024 at 05:07PM
The USDJPY has caught a bid as yields move higher (10 year up around 5 basis points). Chair Powell is more neutral. The US treasury will auction 3, 10, and 30 year coupon issues this week. Perhaps higher yield is being impacted by the need to push them higher to attract buyers.
The move to the upside has taken the price above and away from its 100 and 200 hour moving average is currently at 161.026 in 161.11. The prices also moved above a swing area at 161.27 and 161.39. That is now close risk for buyers. They above opens the door for further upside momentum with the next target near 161.73, and then the high price for 2024 at 161.943.
Conversely, move back below 161.27 and traders might be disappointed – in the short term at least – with the rotation back toward the 200 and 100-day moving average is likely.
So buyers make a play in the USDJPY. Can they keep the momentum going?
This article was written by Greg Michalowski at www.forexlive.com.
