Failed break on Friday, sends the price back into the sideways range
The EURJPY has continued to waffle in a range. The high is mostly defined between 126.648 to 126.734. The low is defined by 125.70 to 125.778.
In between sits the 100/200 hour MAs between 126.275 and 126.345.
The price is below those MAs now and the bias has tipped more to the downside, but that is nothing new. Nevertheless, at some point, the pair will extend outside the range.
Having said that, last Friday, the pair did make a run to the upside to a high of 127.00, but that move failed. That immediately led to a rotation lower with the low yesterday reaching 125.904. However, since then, the price has traded back up to retest the low of the topside resistance area before rotating back down in the NY session today.
What next?
Stay below the MAs keeps the sellers in control. Move below the low from yesterday at 125.90 would have traders looking toward the swing low floor between 125.70 to 125.778.
Move above the MAs and the tilt goes back to the upside with the swing high area at 126.648 to 126.734 as upside targets.
