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The USDJPY is trading to a new high for the week and to the highest level since June 30 after the stronger than expected US jobs report. The pair was trading at 135.80 just before the release and extended to a high of 136.56 after the report. The corrective low has reached 136.30 so far. The current price is trading between those two extremes at 136.40.
Looking at the hourly chart, there is a number of swing highs and lows between 136.298 and 136.435 (see red numbered circles and yellow area). So far the price has been able to stay within that swing area. That is more bullish.
Move back above 136.435 – and stay above – would have traders looking toward the high price going back to June 21 at 136.70 as the next key target. Above that and traders will be looking toward the high from last weekend the highest level since 1998 at 136.997.
From a technical perspective, the low price just before the jobs data, did hold the near converged 100 and 200 hour moving averages near 135.80 (blue and green lines in the chart above). Earlier today in the Asian session the price did move below those levels after reports of former PM Abe being shot. The price based and moved back above the MAs in the European session.
The BOJ remains committed to keeping rates low and bond rates steady which is putting a floor on the USDJPY pair. The pair nevertheless has been consolidating near the highs in up and down trading action since June 17. However, the low prices this week stalled against a upward sloping trendline both on Monday and again on Wednesday (see green numbered circles on the chart above). .