USDJPY is trading at a new high for the week and the highest level since June 30 after the stronger than expected US jobs report. The pair was trading at 135.80 just before the release and hit a high of 136.56 after the report. The corrective low hit 136.30 so far. The current price is trading between these two extremes at 136.40.
Looking at the hourly chart, there are a number of oscillating highs and lows between 136.298 and 136.435 (see numbered red circles and yellow area). So far, the price has been able to stay in this swing zone. It’s more bullish.
Breaking back above 136.435 – and staying above – would have traders looking to the high price dating back to June 21st at 136.70 as the next key target. Above that, traders will look to last weekend’s high, the highest level since 1998 at 136.997.
From a technical perspective, the low price just ahead of the jobs data, kept the 100 and 200 hourly moving averages nearly converged near 135.80 (blue and green lines in the chart above). Earlier in the day, during the Asian session, the price fell below these levels after reports that former Prime Minister Abe had been shot. The price bottomed out and came back above the MAs during the European session.
The BOJ remains determined to keep rates low and bond rates stable, which puts a floor on the USDJPY pair. The pair has nonetheless consolidated near the highs in bullish and bearish trade since June 17th. However, this week’s low prices stalled against an ascending trendline on both Monday and Wednesday (see the numbered green circles on the chart above). .