Higher highs...

The USDJPY has moved higher in trading today but remains contained by the 100 hour MA above (at 100.396). That average was tested on Wednesday and a couple times in trading today. A break above should solicit more buying with the next targets at the 38.2% at 100.707, a old floor level at the 100.85 area. The 200 hour MA comes in at 100.972.

The pair at the end of the NY session yesterday fell - and stayed below - the 100.00 level, but could not stay below that level in the early Asian session. The one correction lower-toward the end of the Asian and start of the European sessions - found buyers against the 100.00 level. Traders supported the parity level.

With support at the parity level, and the 100 hour MA stalling the rallies, the traders will be looking for a break and run. Little on the calendar to get things going. Stocks in the US are projected to open lower (they are lower in Europe but off lows), but interestingly enough the weaker equity market has not led to the Pavlovian reaction of buying the JPY.

It smells like a Friday in the summer. There could be some position squaring between the London fix and the London close which could see a break especially with liquidity conditions lower.