The USDJPY is on fire today and that is also helping to send the JPY crosses higher as well. The EURJPY is not the exception.
Looking at the daily chart, the air moved back above its 100 day moving average last week (see blue line in the chart above). That moving average currently comes in at 138.460. The price was able to base against that level on August 30 and August 31. After running up to a channel trendline on September 2 and finding willing sellers (see green numbered circles 3 in the chart above), the corrective move to the downside yesterday also found support buyers ahead of the 100 day moving average.
Today, the price has been trending to the upside. Technically, the pair moved above the topside channel trendline near 140.985 (call it 141.00). The high price has reached 141.75. The current price trades at 141.53.
Staying on the daily chart, as long as the price can remain above the broken trend line near 141.00, the buyers remain in control with the next target coming against a swing area at 142.314 area (See red numbered circles). Move above that level and traders will start to look toward the ceiling high from June near 144.27.
Drilling to the hourly chart below, the pair peaked on Friday and rotated back down to and through the rising 100 hour moving average during yesterday's trade. However, the price bottomed near the 38.2% retracement of the move up from the August 24 low near 138.726. The buyers entered against the level and push the price back above the 100 hour moving average by the close.
In trading today, the Asian session push the pair higher and it accelerated into the New York morning session. After peaking near a channel trendline, the corrective move to the downside in the New York session helped by a falling EURUSD, stalled near the high price from Friday's trade (Near 140.718). The subsequent rally has taken the price above the early session high at 141.425. Buyers are making a play.
What next?
Watch close support at 141.425 (the earlier session high). A more conservative stop would be a move below the 140.718 level (the high from last weekend near the lows from the corrective move today. As lows price can remain above those levels traders look for more upside momentum are still in firm control.
