USD/JPY Moves Up A Touch On Fujii Comments

The new Finance Minister Fujii commented over the weekend that “appropriate steps” will be taken if necessary to curb the yen’s recent strength.  This helped give the USDJPY a little bid in todays trading but the pairs upside is still limited. The low for the trading day has come in at the 89.34.  The high has extended up to the 89.97.  The close last Friday came in at the 89.74 level.

The price has traded within the 100 hour and 200 hour moving average for the most part (one bar closed below the level) for the last 13 trading hours.  The 200 hour MA comes in at the 90.05 level currently. The 100 hour MA (blue line) comes in at the 89.73 level.

The 100 hour MA has been moving sideways late on the day on last Thursday. This has allowed the 200 hour MA to catch up to the market.  When the price and MA converge, this indicates a non trend market.  Often a move in one direction or the other will materialize.  We will be watching for a break.  A break of MA should signal the the directional bias.

A break on the topside should target the 90.38 level which is the midpoint of the move down from the Sept 21 high to the low on Sept 28th.

On the downside, a break below the 89.73 level would 89.35 next which is a level of support over the last few trading days (see chart below).

Subscribe by RSS Subscribe by Email