Lots of technical support at the 106.94 areaThe USDJPY has a bunch of technical support at the 106.94 area and so far traders are doing their best to hold the level. What they are not doing too well at, is taking the price much higher from the support — so far at least.
So what is providing the support?
- The 100 and 200 hour MA both come in at 106.94
- The 61.8% of the move down from the Feb 21 high to the Feb 26 low comes in at 106.95
- The underside of a broken trend line comes in at 106.965 currently.
Traders have been leaning against the support level so far. However, a break below should solicit more selling.
On the topside, the 107.13 is the 50% of the same range. That was also a swing level from Feb 23 and Feb 26. A move above that level — and staying above — would give buyers some comfort. That level is not far away from the support, but it needs to be busted if the pair is going higher.
The USDJPY moved higher with the Powell comments yesterday but lots some of its upside momentum on the back of weaker stocks and a move off the high yields in the debt market. The high 10 year yield reached about 2.93%. The yield is down to 2.882% currently.