Forex technical analysis: EURJPY works back up to resistance area (it used to be support)

Technical Analysis

Author: Greg Michalowski | eurjpy

Upside move stalls

Yesterday, BAML said they like EURJPY.  I followed with a post about the technical picture and argued that technically, the pair was sitting around support in the 128.957-129.08 area.  

What happened?

The price moved modestly higher in the Asian session today.  However, the price could not get above highs from yesterday.   As a result, the price started to move back lower in the London session today.  

When the pair broke below the 128.957-129.08 level momentum took the pair to a low of 128.58.  That happened to be a lower trend line that connects recent lows on the hourly chart. 

Finally, the buyers (off the trend line) took the price back up to the 129.08 - the high of the technical floor from yesterday.  
 
So, the floor from yesterday is now the ceiling for today.


How is this up and down going to be settled?

I know it is Friday so anything can happen (a wild card is if the EURUSD breaks above 1.1465 or below 1.1435 and there is a momentum run).  But I also believe in the price action and tools applied to that price action.   

The yellow area (128.957-129.08) is a significant barometer for bullish above and bearish below.  If the price is going higher get back above that level.  Until then, we fight the battle of the ceiling above (yellow area), and the trend line/recent lows below (see green circles and throw in the 38.2% as well).  That is about 63 pips range in total.  At some point, there will be a break and a move away.