The EURJPY gapped below the 100 day MA and the 50% retracement at the 104.52 and 104.21 levels respectively today. However, like the other currency pairs today, the majority of the day has been retracing the move lower. On it’s journey higher support resistance has been defined from the 5 minute chart (see chart below).
- The price has been using the 100 and 200 bar MA as support
- Trend line/channel support and resistance lines have also guided the pair higher with a number of tests on the top and bottom lines.
There is currently an intraday ceiling at the 104.31 level developing and the gap to fill at the 104.43. Above those levels comes the key 100 day MA at the 104.52 level. Needless to say, there are a lot of levels to get through on the topside.
However, should the pair get above the 100 day MA (and remain above the support levels against channel trend and 100 bar MA on the minute chart) and close abovet this key MA level, the gap break below from the opening today, will not look so good for the bears and should solicit some further buying interest.
