The pair looks toward the 50% retracement.
The USDJPY corrected lower yesterday into the close toward a support swing area between 108.54 and 108.619. In the Asian session, the price fell below that area (which should have bothered the longs) and the price dipped, but the buyers push the price back higher and when the area based against the area and moved higher, the buying wave continued.
The run to the upside stalled near the high from yesterday and highs from April 14 at 109.089. Currently as I type, that ceiling is being broken and the buyers are looking toward the 50% retracement of the move down from the March 31 high. That comes in at 109.215. Get above that level today and we should see more buying momentum. The current price is trading at 109.17 as I type.
Helping the USDJPY is higher equity prices in premarket trading, along with a move higher in yields. The 10 year yield is now up 6.59 basis points at 1.6753%. Since April 22, the yield has moved up from a low of 1.53%. The yield is now testing the 61.8% retracement of the move down from the 1.774% high at 1.681%. Get above that level is another step in the move higher direction.