High for the month at 110.818. High for the year at 110.96 (from the end of March)
The USDJPY has extended into the months extreme area above 110.546 and is now eying the June high at 110.818. Above that is the high from the end of March at 110.96.
Looking at the hourly chart above, the price spiked higher last week on FOMC day – and in doing so – tried to base the extreme area above the 110.54 area before giving up on Thursday and moving back to the downside.
The subsequent fall saw the pair crack below the 200 hour MA yesterday (green line) and swing areas in the process (see yellow areas) to a low at 109.71. After the rebound off the low yesterday moved back above the 200 hour MA, the sellers turned to buyers. The price trended back higher.
Today, the USDJPY pairs low for the day stalled near the 100 hour MA (blue line). Holding that support, gave the buyers to go ahead to push higher. The London/European high did stall just ahead of the 110.54 level initially, but has just broken higher in the early NY session. Bullish.
The buyers in control above the 110.54 level now with the 110.818 high from last week the next target.
Taking a broader look at the daily chart, the high from the end of March reached 110.96. That was the highest level since March 26, 2020. So a break would open the door for further upside potential.
PS the low from yesterday stalled against an upward sloping trendline. Bullish. The high prices from 2020 reached 111.696 and 112.238. Those highs our the highest level going back to April 2019 (not shown in the chart below).