Forex Trading: USD/JPY Higher On The Day, Helps GBP/JPY Move Higher Too

The USD/JPY made a lower low today (Tuesday) for the 5th straight day (88.77 vs 88.88).  However, the pair has since moved higher and is up on the day for the 1st time in 5 days.  The close yesterday was 89.18 and this level will act as intraday support today.  A move above the high of yesterday at the 90.26 level will give the corrective bulls even more confidence that a temporary low is in place, and a further move to the upside is possible/probable.

The bias is to the upside for the day.  However, a test of the 89.18 level, cannot be rulled out.  Look for buyers against the level and for sellers initially against the high yesterday of 90.26.

Meanwhile, the GBP/JPY moved to a low today of 129.69 before rebounding.  The price is within key, key support at the April 1995 low of 129.32.  This is the second time down below the 130 level (the last time was on Dec 30th when the price moved to 129.86).  It is also the second time the market chose to use the level to buy back shorts  The market will be watching the level cloesly going forward.

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