USDJPY traders want no part of the 150.00 level

<p>As US yields rise, the 2-year yield is up by 12 basis points at 5.218%, and the 10-year yield is up by 13.7 basis points at 4.846%, both on track to close at their highest levels since 2007. Despite the USDJPY's recent upward movement, traders appear hesitant to approach the 150.00 level. The currency pair reached a high of 149.844 today, and is currently trading at 149.76.</p><p>Earlier today, just before the US trading session began, the pair touched 149.74 but quickly plunged to 148.738 in less than a minute. This sharp drop was triggered by reports suggesting that the Bank of Japan might raise inflation expectations. As a result of quick moves like that, there seems to be nervousness among long/buyer positions in the market, especially considering recent sharp declines, including one on October 3 that saw a 280-pip move.</p><p>So, despite stronger US retail sales data, higher yields and the memory of recent sharp declines, traders remain cautious. Higher interest rates and robust economic data aren't alleviating these concerns. </p><p>Nevertheless, from a technical standpoint, breaking below the 100-hour moving average at 149.517 could define a significant level of risk or bias and serve as a stop-loss point for buyers. Traders who like the upside can consider that risk defining option. </p><p>However, if done, there is still potential for slippage. If caught in a tumble like seen on October 3 and even earlier today, that could be enough to discourage both long and short traders from active participation at all in the pair.</p><p>Remember, not playing is always an option for traders as well.</p>

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