- EURJPY tests the 100 hour MA at the 106.66 area (high reached 106.56 so far)
- The price tested the same MA yesterday and sellers used the level to define and limit risk. Trade worked.
- The 100 hour MA is lower today, making it an easier hurdle to overcome
- A move above should solicit additional buying momentum with the 107.10 and 107.61 (38.2% retracement – see yellow areas in the chart above) as the next upside targets.
- Failure to break, keeps the pair contained in the consolidation area with the potential of further downside momentum on a break of the lows.
There is some market chatter/speculation on more BOJ easing. This seems to be contributing to more of the bullish bias over the last hour of trading.