Bearish run below the 200 hour MA.
Yesterday the EURJPY stalled at the 200 bar MA on the 4-hour chart, the 61.8% retracement and formed a strong ceiling there (at 125.582 area). I wrote about the technical picture in a post late yesterday (CLICK HERE).
The fall into the Asian session stalled at the 200 hour MA (lower green line currently at 125.07) and bounced. That move higher in the London morning session, did get back above other MAs including the 100 hour MA at 125.287, and a broken trend line as well. However, the rally did stall well ahead of the aforementioned ceiling area at 125.582. Bears still in control.
Those bears have now taken more control on the break of the 200 hour MA at 125.07. On the break, the price scooted to a new session low at 124.773 so far. The 200 hour MA (and 100 bar MA on the 4-hour chart as well) at the 125.07-096. Stay below those levels, keep the sellers in control. That is risk for sellers now who are looking for more downside momentum.
What are the next targets on the downside?
Staying on the hourly chart,the 50% midpoint of the move higher (from March 27 low) comes in at 124.63. A move below that level and the low from April 2 will be targeted at 124.471. The 61.8% is nearby at 124.398.
Below that, the low from March 29 comes in at 124.137, followed by lows at 123.819 and the low from March at 123.649.
A move back above the 125.096 level now would muddy the bearish waters.