100 hour MA at 131.57
The EURJPY trended lower last week and in the process moved below its 100 day moving average for the first time this year (the last time the price traded below its 100 day moving average was back in December 2020). However, selling momentum below the moving average quickly stalled near the 130.00 level, and the price has since moved back higher.
Drilling to the hourly chart below, the price rise after the failed break of the 100 day moving average has now seen the pair move back above its 100 hour moving average at 131.557.
That move will now have traders targeting the 50% retracement of the move down from last week's high at 131.853. Above that, the underside of a broken trendline and the 61.8% retracement of the move down from last week's high both cut across near 132.28. The 200 hour moving average (green line) currently is at 132.392.
All those levels would be potential targets if the price can remain above the 100 hour moving average at 131.557 (close risk for longs intraday). A move below the 100 hour moving average and the 132.424 (38.2% retracement) would tilt the bias more to the downside on the failed break (this time to the upside).
Sellers had their shot yesterday below the 100 day moving average. They failed. Now the buyers are taking a shot above its 100 hour moving average.
Can the upside momentum continue, or will we get another failed break? That is what traders will be focused on going forward.
