EURJPY trades back in a channel area after a break higher failed on the hourly chart

The EURJPY EUR/JPY The EUR/JPY is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one euro. For example, when the EUR/JPY is trading at 125.00, it means 1 euro is equivalent to 125 Japanese yen. The euro (EUR) is the world’s second most traded currency, whilst the Japanese yen (JPY) is the world’s third most traded currency, resulti The EUR/JPY is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one euro. For example, when the EUR/JPY is trading at 125.00, it means 1 euro is equivalent to 125 Japanese yen. The euro (EUR) is the world’s second most traded currency, whilst the Japanese yen (JPY) is the world’s third most traded currency, resulti Read this Term - which has been on an upward trajectory with the JPY JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term weakness - has seen a corrective move to the downside today.

Looking at the hourly chart, the acceleration higher in this pair increased yesterday on the break of a topside channel trendline. That break sent the price up to a high of 144.245 (highest level since January 2015.

However, momentum died in the New York session yesterday, and sideways price action into the Asian session allowed for the upward sloping topside trend line to catch up to the price. When the pair fell back into the channel, buyers turned to sellers and pushed the price down into the ECB meeting the decision.

Since then, there was a another move the upside. This time, the price held against the topside trend line near 144.08. The price has rotated back lower toward the lower channel trendline, and found early buyers against that extreme.

The lower channel trendline currently comes in at 142.57. The upper channel trendline cuts across at 144.09. The current price is trading at 143.20 between those 2 extremes.

Traders will be looking for those trendlines to provide support and resistance going forward with a break of either extreme likely triggering momentum in the direction of the break.

On the downside, falling below the lower trendline would have traders targeting the rising 100 hour moving average at 141.852. A move below the 100 hour moving average would be the 1st since May 27.

Conversely, a move to the upside -and above the upper channel extreme - and the high price from yesterday, will open the door for further upside momentum. Traders would use the trendline as support. As long as the price can remain above, the buyers remain in more control.

Overall, the buyers still hold the better hand. However, if the upper extreme can continue to find sellers and the lower trend line is broken, that would shift the shorter-term bias in the direction of the sellers. Until then however, the sellers still need to prove that they can take back control after the recent sharp move to the upside.