USD/JPY Moves Higher And Away From 100 Day Moving Average

The USD/JPY has moved higher today further away from the 100 day moving average. Yesterday, the pair moved above this key moving average. It was the first close above the 100 day moving average since September 2008.  The slope of the 100 day MA is still down.  As a result the average is currently at 93.87 (yesterday it was at 93.96).

The pair corrected to the 38.2% retracement level of the move down from the August 18th high of 110.56 to the low of 87.11 on January 21st.  That level comes in at 96.07.  The high today has been 96.06 - one tick short of the level.

We may see some profit taking as a result .  The pair has been moving steadily higher after the break out level at 91.90 on the triangle formation (see chart above).   However, a break above the level will likely trigger some additional stops.

As my collegue commented earlier, the Yen seems to have lost its lustre as the safe haven currency.  We saw the pair rally yesterday after the AIG induced selloff, and today with global stocks down, the rally in the USD/JPY continued.

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