December 9, 2022

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The EURJPY stays below its 100 hour moving average (but downside is limited too)

2 min read

A move above the 100 hour moving average was quickly reversed earlier today

The EURJPY has been chopping up to the downside since the high reached last Thursday near the 130.00 level stalled the rise. 

A move above the 100 hour moving average was quickly reversed earlier today

On Friday, the employment numbers led to a choppy session in the cross trading.  Looking at the hourly chart, the price high after the jobs report did stall near its 200 hour moving average (green line) before closing back near it’s lows.

In trading yesterday, after a early rise above the 100 hour moving average in the Asian trading, the pair used that MA line as resistance(see blue line).  Although price action was still choppy, the bias stayed more toward the downward direction.

Today the up and down trading continued with the pair cracking above the 100 hour moving average, but only briefly before finding the sellers near the 38.2% retracement at 129.674 and moving back toward the lows.  

True to the ups and downs, the pair has most recently rebounded back higher toward the 100 hour MA again.  The current price trades at 129.589.

What next?

Looking at the lows from yesterday and today, the pair formed a buyer between 129.383 and 129.416.   

On the topside, the 100 hour moving average and 38.2% can be viewed as resistance between 129.648 and 129.674.  

Those areas are close support and close resistance where buyers and sellers have focused their attention.  Move above or move below and traders will look toward the next targets in the direction of the break.

On the topside the 200 hour moving average at 129.676 becomes the next key target to get to and through.  

On the downside moving below the 129.383, and traders start to look toward the extreme lows from August between 129.129 and 129.161.

 

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