Traded to highest level since June 8 today
The EURJPY has been in a up and down and now back up again day.
The high price in the early London session price extend toward a topside channel trendline. That trend line currently comes in at 123.07.
The fall back to the downside found support at the 100 hour moving average (blue line) currently at 122.268..
The price trades between those extremes currently at 122.64.
On Friday of last week, the price tested the 100 hour moving average - and even broke below it for a brief moment - but bounced higher. The holding of the level today increases that moving average's importance going forward. Stay above keeps the buyers in control. Move below and sellers take back control.
Also in play on the downside is the upward sloping trendline. That trend line comes in a few pips below the 100 hour moving average currently (and moving higher).
Taking a broader look at the daily chart, the price high today did extend above the swing area from December/January 2020 at 122.64 to 122.865. That area was breached in June when the pair moved to the 2020 year high of 124.417. That was the highest level since May 2019 but failed 2 days later. The run back to the downside in June bottomed near the 200 day moving average and 50% retracement of the move up from the May low to the June high at 119.403.
Since bottoming in June, the price has chopped higher and it is currently revisiting the swing area between 122.64 and 122.865 (see yellow area in the chart above. It will take a move back above that area to give buyers more confidence. Hold in that area, would not be good news for the buyers. We are currently testing that swing area.
SUMMARY: Key bounce off the 100 hour MA is good news for the buyers, but there is some work to be done by the buyers. Specifically they need to extend the rally back above the 122.64 to 122.865. If that can happen, it would be more bullish and put pressure on the sellers.
