I missed this one....
200 day MA and 38.2% retracement stalls the EURJPY rally
I missed this one from earlier in the day.
The EURJPY rallied up toward a pretty juicy technical level defined by the 200 day MA at 117.83 and the 38.2% retracement at 117.91. The market price moved up to a high of 117.813 - just a pip or so away from the 200 day MA and less than 10 pips from the 38.2% retracement.
Those traders on the ball, leaned against the low risk defining level and they have been rewarded with a move back lower. The current price is trading at 117.146 currently. Certainly a nice, low risk trade.
We are kinda at another key level.
Looking at the 5-minute chart, the pair is currently testing the 50% of the move higher at the 117.156 level. The 200 bar MA on the 5-minute chart is also at the level. This area should provide a level of support - at least for traders looking for a low risk trade. If it holds we could see a rebound back toward the 100 bar MA above at 117.40. The 100 bar MA on the 4-hour chart is also at the level (lots of dual technical levels in the EURJPY charts). If the price starts to trade below 117.10, then all rebound bets are off. We should see more downside momentum.
I missed this one....but live and learn.