The EURJPY moved higher on the USDJPY run to the upside today. The JPY is the weakest of the major currencies, and that has helped to propel this pair higher as well (lower JPY).
Technically, the pair was able to extend above its 200 hour moving average for the 1st time since July 25.
Yesterday the price moved up toward that moving average but found willing sellers against that and rotated back down toward the flattening 100 hour moving average (blue line in the chart above). After waffling up and down in the New York session yesterday and Asian/London morning session, the pairs upside was ignited after the US jobs report.
The move higher extended above the
- 38.2% retracement at136.798,
- the swing high from yesterday's trade at 136.92, and
- the swing high from July 29 at 137.319.
The high price so far reached 137.75. That got within 10 pips of the 50% midpoint of the move down from the July 21 high at 137.85. The 100 day moving average is just above that level at 137.93.
Ultimately, if the run higher is to continue to the upside, getting above the 50% and 100 day moving average would be key levels to get to and through.
US stocks have tilt back to the downside with the NASDAQ leading the way in what has been volatile trading so far. That is giving some cause for pause for the EURJPY. The price has dipped back down toward the swing high from July 29 out 137.319, but is finding support against that level. If the pair can continue to hold support against that level, a run back toward the 50% at 100 day moving average is still a possibility. Move below that level, and traders will look toward the 1.36925. Below that is the aforementioned 200 hour moving average at 1.36549.
A move back below the 200 hour moving average would be a big disappointment after the break higher today
