Stock market?
The US employment report headlines sent the USDJPY lower on the initial reaction, but all those pips to the downside have been erased. Why? Stock market perhaps. Fed one and done. The Nasdaq is up about 19 points and the S&P is up around 7 points. Pairs like GBPJPY reversed and traded at session highs.
Technically, the USDJPY bottomed near swing levels going back to early July (between 102.66-82). That area has defined bullish above and bearish below since that time. So technically, the price held the line. It also held comfortably above the 200 bar MA on the 4 hour chart.
Buyers who stuck there nose in at the support level have benefited from the snap back rally.
The pair is back to the 103.50 level which is the 50% of the post-Brexit range and the rally has stalled at that area. Can we call that area another key level for bullish and bearish sentiment? Yes.
We are 30 minute past release. The market held a nice support level. We are at the midpoint area. Do we push higher or lower? As I type, the traders are taking the higher route a it shoots up to 103.70.
PS JPY crosses are moving higher too GBPJPY is above 138.00 and EURJPY is above 116.00
