50% retracement at 110.701. Topside trend line at 110.736.
The USDJPY moved above its 100 day MA early in the NY session at 110.49, and has been able to stay above that level. The pair is now approaching the 50% retracement of the move down from the April 23 high at 110.701. Just above that is the topside trend line (and moving higher) at 110.73. A move above those level opens the pair for more gains.
Helping is rising stocks.
The Nasdaq is trading up 100 points or 1.30%. The S&Pis up 28 points or 0.99%
Interest rates are also higher with the 2 year now up 3.5 bps and the 10 year up 1.3 bps.
Fed’s Rosengren had an interesting comment today when he said:
- We are getting much closer to where the balance sheet might need to expand
Fed’s Evan spoke about letting the economy run hot by saying:
- Fed must follow through if we say will go over 2% inflation
- Inflation makeup strategies could require short run price increases well above 2%. That raises possible issues of whether Fed will be believed to follow through
Those types of comments are good news for stock bulls (a more accomodative Fed).