Higher stocks and yields not impressing the “risk off” buyers in the pair…
Yields are higher and so are stocks. The USDJPY has had some upside wander (after a lower opening), but the pair is not running away.
Looking at the price action today from the 5 minute chart, the price peaked at 106.692 and corrected 50% to 106.45 so far. That correction also stalled at the 200 bar MA (green line at 106.46 currently). The price remains below the 100 bar MA (blue line above) at 106.555. A break outside the yellow area is a tilt in that directional bias intraday.
Looking at the hourly chart, the 106.63 to 106.758 is a swing area (see red circles), and also the home to the 38.2% of the move down from the August 1 high (at 106.674). The high today stalled in that area.
If there is more upside wander, getting and staying above that area will be needed for more bullish bias, with the high from last week (at 106.98 and the 50% at 107.178 upside targets (on a break).
On the downside, there sits a lower trend line at the 106.40 level (currently). That trend line needs to be broken to shift the bias lower. Following that,is the 100 hour MA at 106.249 and the 200 hour MA at 105.977.