China/US trade hopes also a benefit today
THe USDJPY has jumped to a new session high on the back of the better than expected ADP employment report showing 195K change vs estimates of 148K.
The USDJPY has now cracked above the 106.63 to 106.77 area that has been home to a number of swing highs going back to early August on the hourly chart (see red numbered circles in the chart above). There have been prior runs above the “yellow area” on August 6 and again on August 13, but each were quickly reverse. As a result traders will be watching the swing area for support now. Stay above the swing area now, and the buyers remain in control.
The swing highs at 106.968 and 107.08 are now upside target’s for the longs to get above if the pair is indeed breaking more to the upside.
Looking at the daily chart below, the 107.205 was the low price in July. Moving above that level will target the 38.2% retracement of the move down from the April high. That level comes in at 107.475. The falling 100 day moving average is up at 108.224. The price of the USDJPY has not been above that moving average level since May 22.