Looks to test the 200 hour MA at 110.038
The USDJPY has traded above its 110.00 level and next looks toward the 200 hour MA at 110.38. The trading ranges now 55 pips which is the 22 day average (a month of trading). The 200 hour MA should provide some resistance as risk can be defined and limited, with stops on a break above.
The move higher corresponds with the 10 year yield moving up to test the 1.300% level. The yield just ticked to a new high at 1.298%.
The move also comes ahead of the FOMC meeting minutes (from the July 27-28 meeting) which will be released at the top of the hour. The focus will be on talks of speeding up the taper to as early as September 21 – 22 meeting as well as the inflation trend. Is it transitory or to some members see more permanent inflation? Finally, has the conditions been met or close to being met for “substantial further progress” in the jobs recovery.