200 day MA stalled the rally yesterday

The EURJPY tested the 200 day MA yesterday at the 131.87 area. The high reached 131.97 on a quick run higher (stop hunting?) but that break quickly faded.

Today, the price rotated lower, breaking below the 100 hour MA for the first time since July 5th. That break stalled when the price approached the 200 hour MA (green line in the chart above). The rally corresponded with the low in the EURUSD today (the EURUSD retraced back to the closing level of 1.16595 and has stalled).

Is that it? Do the sellers come back in?

When a key MA like the 200 day MA is tested and for the most part stalls a trend, you have to respect it. Traders can easily turn the beat around and correct/consolidate for a few days.

However, you also have to be cognizant that the move lower has to get through targets like the 100 and 200 hour MAs.

We have gotten below the 100 hour MA, but not the 200 hour MA. If the price can stay below the 100 hour MA the correction/consolidation is still on. If it goes higher and there is momentum above the 100 hour MA, the trend might still be your friend at least until the retest of the 200 day MA at 131.855.

Key level folks.