Takes or last Thursday's high but backs off
The USDJPY rallied yesterday, corrected in the Asian Pacific session but found support buyers where the bulls needed them - against the 100 hour MA at the 109.862 level (in reality, the bulls were the ones who bought while they leaned against risk defining support).
The push higher off the support, took the price up to a high 110.42. The high did take out the high from last Thursday which peaked at 110.38. The high for the month comes in at 110.585. These are the next targets.
The pair continues to whittle away the move down from the last end of April BOJ meeting (April 28) when the BOJ was less dovish than expectations. That high peaked at 111.86.
Looking at the daily chart, the price has moved above a topside trend line and 50% retracement of the move down from the Mid Feb corrective high. That comes in at 110.206. Traders will be eyeing this level as support/risk defining level for the day. Stay above and the buyers are looking like they want to make a play for a test of the month high. Move below and the waters are a little more muddy.
