EURJPY runs into October/November highs and backs off

Technical Analysis

Author: Greg Michalowski | eurjpy

Swing highs between 124.99 and 125.128 stalls the rally

The EURJPY moved higher in trading today, but stalled at 125.117. That was just short of the November high at 125.128 and just above the October highs at 124.99 and 125.076. The inability to extend above the ceiling has led to a reversal lower.   

Swing highs between 124.99 and 125.128 stalls the rally
Drilling to the hourly chart, the price has fallen back toward an upward sloping trend line and swing area between 124.49 to 124.56 (see red numbered circles and yellow area).   Earlier today, the price initially tried to extend above the area, only to fail. The second try however found buyers against the level. 

Move below that area and the pair will have traders looking toward the rising 100 hour MA (blue line in chart below) at 123.323. 

EURJPY on the hourly chart
With the price testing the swing area, it is decision time for the buyers and sellers.   Will support hold and the price move higher? Or will the area be broken and lead to more downside probing?
For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose