USDJPY Soars and Rebounds
USDJPY saw another downtrend after returning above the 38.2% April trading range to 156.615. Downside momentum increased on the break below the 100 hour moving average at 155.923 and then headed towards the 50% of the April range (at 155.505) and the 200 hour moving average (at 155.247).
This 200 hour MA initially stopped the fall after intervention earlier in the day, then moved below the level on the second observation, with more momentum moving towards the day’s low at 154.50. .
Now – with the current fall to the downside – price has made another “try” below the MA, but has once again bounced higher.
The 100 hour MA is seen again at 155.926. If the seller intends to move lower, this MA is a level to build against and it is necessary to stay below it.
However, if the markets are just in the post-intervention phase where buyers and sellers are afraid and this leads to sharp moves up and down, then a return above this MA can lead to more great coverage as traders are whipped.
US yields fell, with 2-year rates now down 3 basis points and 10-year yields down more than 5 basis points and near session lows.
The dollar is trading near its lows against other currencies, including the GBP, CHF and NZD. The dollar is not at session lows against the CAD, AUD and EUR, but continues to fall against these currencies.
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