Stocks rising on US Mexico news helps the tone. Also runs away from 100 hour MA
The USDJPY has been mired in a 66 pips trading range for the week.
Well that range has been extended thanks to a run higher on the back of a break (with momentum) of the 100 hour MA at 108.186, and news that US/Mexico were working on a deal that would boost Mexican immigration enforcement (some 6000 border guards), and give the US more latitude to deport asylum seekers.
Stocks have move higher (once again) on hopes the tariffs won’t be enacted on Monday (Nasdaq is up 0.58%. S&P is up 0.75% and Dow up 0.78%). Bond yields in 2 year are higher although 30 year yields are lower.
For the USDJPY, the price moved to a new session and week high at 108.53, taking out the prior high at 108.48. The next target is at 108.615 (38.2% of the move down from the May 30 high), and then the 200 hour MA at 108.79. Close risk now is 108.40 (but I would expect 108.44 to find buyers on a little dip).
The USDJPY has been looking for a reason to run higher. THis should be it (I would think).