EURJPY a big gainer today. What was the catalyst?

The horse has left the barn, but the technicals showed the way for the EURJPY

The EURJPY is one of the big movers in trading today.

The pair moved from a low of 129.65 to a high of 131.14. We currently trade off the high at 130.88.

What was the catalyst for the move.

Fundamentally it was the BOJ decision today to stick to ultra easy money policy, but would widen the allowable trading range for the 10 year note. The 10 year yield moved down from around 0.12% to 0.06%. That weakened the JPY in the process.

Also helping were the fundamentals.

Looking at the hourly chart below, the price held the 100 hour MA (blue line in the chart above).

From that low, the price tested both the 200 hour MA and the 100 day MA around the 130.1-15 area. The price stalled initially. Then started to move from that level higher.

That was it. The sellers became buyers. The fundamentals, the price action and the technicals applied to that price action told the whole story. The buyers took control.

What now?

Well, the rally moved above the 61.8% of the move down from the July 17 swing high. That comes in at 130.885. The high did stall short of the swing low/swing high from July 19 and July 20 at 131.20 (area). The high reached 131.14.

Drilling to the 5-minute chart below, the price is stalling/correcting into the 100 bar MA on the 5-minute chart. That comes in at 130.86 currently. A trend line cuts across below at 130.76. Moves below those technical levels might give buyers a reason to take profit/sell (and new sellers a reason to think about selling). There would be more work to be done on a sell (like get below the 38.2% and the rising 200 bar MA (green line), but the upside potential might be a little tougher.