Moves above the 50% retracement
The dollar is on the way up higher – reminiscent of yesterday without the PMI data – and this has led the USDJPY to hit new session highs.
The pair just broke the 50% retracement of the decline from the November 11 high to the November 18 low. This level is 104.659. The high price just expanded to 104.756. The next higher target is 104.816 to 104.851 (see circles numbered in red). The level corresponds to swing troughs dating back to November 10 (see the red numbered circles). A move above this level and stay above the upper extremes from November 9 to 16 to particularly tackle the 105,000 level and a swing zone close to 105,149 to 105,183.
If the upper breakout fails, a rotation towards yesterday’s close 104.468 and the 38.2% retracement at 104.42 would be targeted.