Is it following a softening of the stocks pre-opening
The USDJPY has softened a bit and so have the pre-open stock indices. The S&P futures are up 10 points. They were up 22 points earlier.
The USDJPY closed yesterday at 115.09. The high in the London session squeaked up to 115.18. the subsequent highs "held that close" (see 5 minute chart above).
The price lower has not been fast and furious - it is more controlled and choppy (kind of like the price action of late), but we are lower. There are a number of swing lows starting at 114.48 to 114.37 to 114.31 to 114.25 to 114.19. On the topside now a move above the 115.08 level will be eyed. Perhaps the 114.806-862 now that we have extended lower.
The technical thing helping the shorts is off the daily chart. Yesterday the pair moved below the 115.55-91 area and then stayed below. That is a key level that cannot be ignored. This is what it looks like on the chart. Swing lows that bottomed and move higher. Now the break below. Choppy intraday, but the break should keep the lid on it.
On to the stock opening and then Q&A from Yellen.
