Buyers and sellers try breaks but fails
The EURJPY moved above the high from last week yesterday at 125.196. That break so traders use the old level as support and make a run to a new high at 125.578 in the early European session.
However later in the London session, the price move back below the old high and moved down to its 100 hour moving average (see blue numbered circle 2). After a run back up toward the high from last week that stalled, the pair fell below the 100 hour moving average, but stalled right at the swing low from the Asian session and bounced.
What the price action is showing is traders trying to make plays - first to the upside and then to the downside - but each failing. The run lower saw a quick a rebound and moved back above the 100 hour moving average giving the buyers the edge in the overall control. Stay above is more bullish.
Also helping that bias is that the price remains above the 38.2% retracement of the move up from the July 24 low and a rising trend line as well. All those technical reasons point in the favor of the buyers.
However, to keep the the buyers satisfied, the price will need to get and stay above the 125.196 level.
