Below 100 hour MA
The EURJPY moved lower in the early Asian session and in the process found support buyers near a lower channel trend line. That trend line was broken on Friday but the break failed. and closed above the line. Today's hold gave buyers the go-ahead to take the price higher.
The move higher ended up get near the 100 hour MA and topside channel trend line at the day's highs. Sellers came in early and the price rotated lower. The 100 hour MA and trend line are currently at 125.344 and moving lower. If the buyers are to take more control, they need to get above that level.
The lower channel trend line comes in about 90 pips lower at 124.44 currently. The price trades between the tow at around 125.00. Traders will use the channel levels as barometers for bulls and bears going forward.
WHat about at current levels?
Drilling to the 5 minute chart below, the price correction off the low from Friday has bottomed between the 38.2% to 50% of the move off that low. That Correction Zone comes in at 124.884 to 124.99. The low price reached 124.909 above the 50% midpoint.
Stay above the lower limit keeps the buyers more in control. Having said that traders will be eyeing a break above the 200 bar and 100 bar MAs up to 125.08. If the price can get above those levels, the pressure will be off the downside and we should see further moves to the upside.
