So far, finds sellers
The USDJPY is rising hard today with a 97 pips range (vs 68 pip average). The pair is up 51 pips after an early Asian decline that saw the price test the low from yesterday at 106.565 and finding dip buyers.
The run to the upside has moved back to the 100 hour MA (blue line) currently at 107.518 but has backed off on the first look. If the price is to go higher, it has to get – and stay – above that level.
Stocks are helping with the major indices working on retracing some of the oversized declines yesterday. Of note is the fall yesterday was much less than the gains today despite a much larger stock decline yesterday.
However, for the week the high was on Monday at 109.68. The price fell steadily despite the Nasdaq reaching an all-time high on Wednesday. So just because stocks rally does not mean USDJPY has to go higher.
For today, however, with stocks and yields higher, you can say the pair is being pushed by those dynamics.
A move below the 107.30 level might see more probing to the downside, but there should be support ahead of 107.07.