USDJPY moves to a new high for the year (barely) and backs off

Technical Analysis

..New high but just barely (at least so far).

The USDJPY moved up after the CPI data today and in the process took out the high price from yesterday but only just barely. The high yesterday reached 113.783. The high price just reached 113.798 but backed off. The current price is trading at 113.64 as I type.

The high today is the highest level since December 4, 2018. The move higher did take out the high from December 18, 2018 at 113.704.   Getting back above – and staying above that level – could be an early “tell” to a push higher going forward.  It could also be a “tell” of selling interest.  Watch that level in the short term. 

Drilling to the hourly chart below, the price has a trendline that cuts across near 113.52. A move below that level could see some further downside probing as traders get frustrated on the lack of upside momentum.

USDJPY on the hourly chart

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