December 5, 2022

Forex Solution

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EURJPY finds some support near old swing area

1 min read

The 131.00 area stalls the fall.

The EURJPY has trended lower over the last few days after breaking out of a channel yesterday.  It also extended outside of an up and down trading range that has confined the market since mid-May (see Red Box).  

The 131.00 area stalls the fall.

The fall today saw the price move down to a low of 131.017. That was just above a swing area near 130.965 (see red numbered circles).  The price has bounced and currently trades at 131.351.  

Drilling to the 5 minute chart below, like other pairs, the pair ran away from its 100 bar MA (blue line) and will now take a move above that MA to tilt the shorter term bias more to the upside. That MA is currently at 131.69 (and moving lower).  With the current price at 131.362, the pair is still a ways away, but the MA is moving down at a pretty solid pace. So it could catch up in a few hours or so.  Get above, and getting back above the 200 bar MA (green line) will also be eyed to give buyers more control. Absent that, and the sellers still hold onto more control.

For now, the buyers held the support near 131.00, but there is still more work to do to assume more control. 


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