The lone bright spot for the Greenback in today’s forex session has been the performance of the USD/JPY. Rates have climbed steadily since the open, extending Thursday’s gains. At press time (12:30 PM EST), the USD/JPY is up 36 pips and pushing intrasession highs near 112.00.
Bullish action has been hard to come by today for the USD. The Greenback has slid against the European currencies while managing to eke out some gains against the yen. With gold in rotation and losses vs the Swiss franc, it is truly a mixed bag for the USD against safe-havens.
The USD/JPY Is On The Bull, 112.00 In Play
Over the past 48 hours, bids have hit the USD/JPY en masse. This market has rallied almost 100 pips and the bulls are in control of the action.
For the near future, there is one technical area on my radar:
- Resistance(1): Double Top, 112.07-112.13
Bottom Line: The upper extreme value of the daily Double Top (112.13) is the high water mark for March. This area is likely to stand as formidable resistance and may hold the current uptrend in check.
Until elected, I will have sell orders queued up from 112.09. With an initial stop at 112.28, this trade produces 25 pips on a retracement back beneath the 112.00 handle.