Stocks are up. Data a little better
The USDJPY has been up and down in trading today - consolidating the rally started on Friday.
Looking at that move higher (see hourly chart above), the pair corrected short of the 38.2% of the move up at the 110.688 level (the low reached 110.79). The London session low bottomed at 110.88. The high today fell short of the peak from yesterday at 111.444. Yesterday the high stalled near a topside trend line connecting highs going back to May 10. Consolidation between bull pennant levels.
It is a bull pennant for the pair from a technical perspective. The topside trend line cuts across at 111.30. The lower trend line cuts across at 110.87. Technically, traders will have an eye out for the next break and run. Will we get it today? Hard to see, but preparing for the future.
Pulling back to the daily chart, the pair has been inching higher and has moved above the Feb lows at the 110.96-111.03 levels Keep a closer eye on that area in trading today for perhaps more bullish clues. If the price stays above, that would be more bullish. A move below and the traders will be eyeing that lower trend line on the hourly chart at 110.87. A break below would not be welcomed.
