Forex technical analysis: JPY pairs run to the upside

EURJPY trades at the highest level since October 2015

The JPY pairs are racing higher on the back of stock advances and a run out of the "relative safety of the JPY" (or so they say).

Not only are the US indices trading at record levels (although the Nasdaq is seeing some retracement), but the European stocks are also racing higher. The German Dax is up 1.37%. The Cac is up 1.49%. The Italian FTSE MIB is up 2.56%. Spain's Ibex is up 1.69%.

Looking at the EURJPY, it is running higher and trades at the highest level since October 20, 2015. The pair moved waffled around the 61.8% of the move down from the 2014 high at 134.385. Today, the pair is making that break further away from that technical level.

The next targets would correspond with swing highs from September and October 2015. They come in at 136.955 and 137.43 respectively.

The GBPJPY is moving higher and trades above the 38.2% of the move down from the 2015 high at 151.818. Swing highs from 2017 at 152.85 and 153.40 are targets to get to and through. We just moved above the 152.85 level (trading at 152.92).

For the plain ole USDJPY, the pair has moved up to the 50% retracement off the hourly chart at 112.84. The 200 hour MA comes in at 112.897. A move above those levels would increase the bullish bias. Remember on Tuesday, the pair stalled at the 100 day MA. Yesterday the pair stalled at the 100 hour MA. Today, the price traded above the 100 hour MA, and that gave buyers more unside potential. The US had better ADP and better Markit PMI data as well. Rates in the US are higher with the 10 year up about 2.9 basis points at 2.4761%. That is giving that pair more of a bullish bias.