Breaking trend line keeps the buyers happy and in control

The EURJPY has also had a nice trend move higher today.

Looking at the 5 minute chart, the pair started the day basing near the 100 and 200 hour MAs. The pair moved up to test the 100 hour MA at 132.32 area. Then the 200 hour MA and 100 bar MA on 4-hour chart at 132.48-50 area. Once above that area, the pair started to run higher (see 5 minute chart above).

Taking a broader look from the hourly chart, the price of the pair has most recently moved above the 50% retracement at 133.026 AND a topside trend line at 133.15. We currently trade at 133.21. Stay above the 50% and even better, the trend line, will keep the bulls firmly in control. A move back below and there could be some profit taking...

The pair has come long way today. The range is 133 pips. The average over the last 22 days (about a month is 87). Both the EURUSD and the USDJPY are up. So both are contributing to the move higher. Higher US yields are helping the USDJPY's cause. All the JPY crosses are on a run. There were some dovish comments from BOJs Sakurai that also helped the bias. Stock rally is also leading to risk on run in the JPY pairs.