Pair tried to break higher yesterday, but failed
The EURJPY raced higher yesterday and in the process rock outside of what has been a sideways up and down trading market since March 31. The low as been at 129.567 and the high at 130.678 over that time period. The break higher yesterday reached up to 130.97 on the race higher, but after the price started to trade back below the higher swing area between 130.579 and 130.678, the buyers turn to sellers and the price trended/tumbled lower.
That move to the downside continued today with the price entering the lower extreme between 129.567 and 129.689. The low price reached 129.631 where dip buyers lean against the low area.
The price is now risen back toward the 100 and 200 hour moving averages which are centered between the upper and lower swing extremes. The 100 hour moving averages at 130.169 and the 200 hour moving averages at 130.248.
If the sellers are to stay in control, look for sellers against this area with stops on a break above. If that can happen, there is a shot that the selling reenergizes and the price ultimately makes a run toward breaking out of the "red box" to the downside.
If the MAs don't find sellers and the price moves above, the pair can run back to the high of the "red box".
Overall, the pair has been mostly in a 110 pip trading range for 16 days now (and 140 pip if you count the failed break). There have been a number of tests of the lower extreme and a number of tests of the higher extreme. At some point the pair will break and make more of a trend like run.
For now the pair is mired within the trading range, but the non trend is getting longer in time. Be aware. Look for price and technical clues to the bias nuances from traders.
For a video on non trend to trend, view my latest video HERE.