The USDJPY has seen more upside momentum. The rise was triggered by Daly’s more hawkish comments on inflation. The US market may have gotten a little ahead of itself on rates.
USDJPY bounces higher as rates rebound.
Technically, the 131.24 – 131.48 swing area was joined by the 61.8% retracement of the move up from the May low at 131.328 as a key target to get back above at today.
The price has indeed moved back above that area and that has triggered more buying.
Also helping today is that earlier today the price got close to the rising 100 day moving average at 130.234. The buyers leaned against the moving average as risk could be defined and limited. The buyers are rewarded with a solid run to the upside.
See earlier video where I speak of the levels in play and why they are important (CLICK HERE).