Running close to the May high

The USDJPY is moving to new highs and in the process, is on it's third trend leg higher today.  

At the time of the post, the 2nd leg was correcting but holding the 38.2% as well (of that leg). It did hold, and the third leg was started.

That leg has now seen the price move from 109.446 to a high of 109.743. The 38.2% of that move comes in at 109.63.  Stay above on the correction and the buyers continue to win (and sellers lose). The 50% is at 109.594. A move below each is needed to dull the trend move.  It may not be the end of the upside, but it says the “market” is more balanced after the trend move higher.

What may be a concern and reason to pause is the price is approaching the May high at 109.78.  Sellers have leaned just ahead of that level. A move above, however should solicit stops as trends can go “farther than expected”.

USDJPY on the hourly chart

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