USD/JPY And Yen Crosses Move Higher And Continue To Baffle

The USD/JPY reversed strongly from extreme lows at the 88.58 level and rocketed higher back toward the 200 hour MA at the 89.35 level (high was 89.32).  In the process the Yen crosses, led by the GBP/JPY and EUR/JPY moved higher as well - breaking above the 100 moving averages for those pairs in the process.

Admittedly, the market’s moves today in the USD/JPY surprised the market after the Tokyo and early London sessions experienced narrow trading ranges.  This is why being alert to the possibility of a break is important.   However, in the spirit of the current environment, especialy versus the USD/JPY, the snap backs are quick and suggest that the trading remains in the hands of short term traders who are not committed to their convictions.  One day, the trend will extend for a period other than a few hours  However, for the USD/JPY at the moment, anything remains a possibility.  Continue to watch the breaks.

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