USDJPY breaks above the 140.00 level. What next?

<p>The USDJPY is breaking above the 140.00 level. There was a bunch of option expiry's at the 140.00 level today and after 10 AM ET option expiration time, the price rotated higher and has since broken above that level. The next target in the USDJPY comes against the 38.2% retracement of the move down from the end of June high. That level comes at 140.22. There is a swing area up to 140.452 (see video outlining that level).</p><p>The 50% midpoint of the move down from the end of June high comes in at 141.149. On more upside momentum a move toward that level cannot be ruled out going forward. </p><p>Fundamentally, US yields are higher today with 2 and 10 year yields up over 10 basis points. The Federal Reserve will tighten rates next week. Meanwhile, the Bank of Japan is giving hints that their yield curve control measures will remain unchanged when they meet next week. That is bullish for the USDJPY.</p>

This article was written by Greg Michalowski at www.forexlive.com.