200 bar MA on 4-hour up at 113.00
The USDJPY traded to new session highs at 112.889. In the process it took out the high from last week/Friday at 112.869, but the buck stopped pretty quickly. We trade at 112.72 now. The lows today come in at 112.63. There are two bottoms on the 5-minute chart near that level. A move below, might be a trigger for a little more gap filling to come. The 200 and 100 bar MA on the 5-minute chart come in at 112.37 and 112.249 respectively.
The close on Friday was down at 112.16 area. The price gapped higher on the back of the US Republican's passing their version of the tax reform. If the price should keep the gains, the 200 bar MA on the 4-hour chart comes in at the nice round number of 113.00. The last time the price traded above the 200 bar MA on the 4-hour chart was back on November 16th (see green line in the 4-hour chart below).
Helping the USDJPY today in addition to the tax news, is the run up in yields. The US 10 year yield is up about 5 basis points to 2.41%. The high yield moved up to 2.4187%. The low has been at 2.4044%.
Gold is also lower which is a support for the greenback. It is down -$5.50 or -0.43% at $1275.
