USDJPY rises and extends back above recent swing area/broken retracement

Technical Analysis

Swing area at 1.0691-95. Risk for longs now

The USDJPY has moved higher after the decent US jobs report. In doing so, the pair will back above a swing area at the 106.91 – 954 . In between, since the 38.2% retracement of the move up from the August 26 low. That retracement level comes in at 106.925.  

The 106. 91 -954 area is now close risk for longs who are looking to take back control after a three day fall that took the price from a high of 108.463 to a low reached yesterday at 106.477. The low price yesterday stall just ahead of the 50% midpoint retracement at 106.451.  That was a good level to find dip buyers.   They now hope that the price can continue the build higher by staying above the swing area.

On the topside the pair has the high from yesterday and low from September 20 at 107.30 as the next upside target.  The swing low from September 26 comes in at 107.418. The falling 100 and 200 hour moving averages come at 107.483 and 107.571. Finally the 100 day moving average is at 107.661.  Those are topside targets if the bulls can keep the momentum going.

The US stocks have reversed higher on the data and  look to open with gains.  The Dow futures are implying a rise of 72 points.  

US yields are also higher with the 2 year up 3.3 basis points. The 10 year up 1.5 basis points.  

Gold is lower by $-6.50 to $1498.50. 

Higher stocks, higher yields and lower gold tends to strengthen the USDJPY, but it is always nice to have the technicals support those intraday intermarket moves.  Hold the 106.91 level.  

ForexLive

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