The 200 day MA and 38.2% have been broken today
The EURJPY got a boost today from flow into the EUR (Nowotny's comment that bond buying should end by the end of the year certainly helped) and flows out of the JPY (the rising stock markets helped that run).
Those dynamics helped the pair move above its 200 day MA at 132.11 and the 38.2% retracement of the move down from the February 2 highs (at 132.204). That is more bullish.
Having said that, the run higher has been hurt over the last few hours on a counter comment from the ECB that Nowotny's comments are his own, and not those of the board. The EURUSD came back down.
Stocks have also come off their highs (S&P at 2647 vs 2662 high). That helped the USDJPY move off it's highs.
We currently trade at 132.309. The high price reached 132.614.
Now although off highs, the break above the 200 day MA is a key break in trading today. The pair had been below the MA since March 14. The tests since then, have found sellers. That cannot be ignored. The buyers are still in control.
However, if the EURJPY fails to close above that MA line at 132.11 (and the 38.2%), the bias should swing back lower.
