USDJPY trades between a key swing area between 1.31297 to 1.31567 | Forexlive

The USDJPY is trading near highs as the market reacts to Fed official comments who see rates staying higher for a while and potential for even higher rates if service inflation does not start to abate.

Looking at the four hour chart above, the pair has moved into a swing area between 131.297 and 131.567. The apparatus reached 131.487 so far today. The current price trades just below that 131.44.

Taking a look at the hourly chart below, the pair yesterday stalled the fall near the 100 hour MA (buyers leaned).

Today, the price will below the 100 hour moving average in the European morning session, but fell short of the low yesterday and the 50% of the February trading range near 130.485. The low price reached 130.59 so far today. The early US trading has also been able to stay above the 38.2% retracement 131.054.

So buyers are making a play near technical support levels. All above the 38.2% retracement/100 hour moving average keeps the buyers in control in the short term.

US yields remain mixed with the shorter end modestly lower while the longer end is higher:

• 2 year yield 4.466% -0.4 basis points
• 10 year yield 3.682% +1.0 basis points
• 30 year 3.742%, +3.5 basis points

US stocks are nearer their lows with the S&P index down -25.25 points or -0.61%. The NASDAQ index is now down near 1% or -117 points at 11996.27