The USDJPY is extending above the 2026 high at 160.717. The high price reached 160.79.
Warsh came in and the tone of the Fed shifted with officials changed their favorite bird from a dove to a hawk.
For the USDJPY the price is moving further away from the 160.00 level – a level that attracted the Bank of Japan and Japanese officials in the past. However, the market is having it hard to ignore the 2 year yield moving up 17 basis points to 4.22%. The September futures has a 65% chance of a hike now up from 32% before the decision.
Looking at the daily chart, more momentum would have traders looking toward 2024 highs at 161.92 – if Japan will allow it.
Support/close risk for traders is 160.44 and below that the 100/200 hour MAs near 160.25. If the price cannot get and stay below those MA, the sellers are not winning.
