The up and down session defines risk vs technical levels
The EURJPY is another pair today that is mired in an up and down range.
The initial move was a little higher in early Asian trading, but when the 200 hour MA )green line)was broken with momentum, the price fall intensified. The fall to the lows found support ahead of the 38.2% and the swing area around 121.834. The run back higher off those lows, moved above the 200 hour MA (green line) but stalled just ahead of the 100 hour MA (blue line) The price is back down near the low extreme (38.2% and swing area). Down and up and down again.
That up and down price action says the "market" is unsure of the next directional move. Having said that, we can hope that eventually the 54 pip range will be broken and the price momentum continue in the direction of the trend.
Until then, however, the dip buyers will also look to lean against the 38.2%/swing area below, and sellers on rallies will lean against the 100 hour MA above. Those range traders are looking for some pips on the trade, but if the extremes are broken, they are likely to simply exit and/or go with the break.
Traders are trading with an eye out for the next break and run.
