Some clues in the EURJPY for a top
The EURJPY move above a topside trend line on Thursday on the hourly chart as the pair raced to the highest levels since April 2019.
The break however failed, and resistance was reestablished against the old trendline (see green circle number 4).
The price yesterday fell below its 100 hour moving average (blue line in the chart above). The low price did extend today to a lower trendline and bounced. That bounce move back up to retest the 100 hour moving average today where sellers have stalled the rally (at 126.052).
The price has backed off that moving average and currently trades around 125.84. Are the sellers making a play?
Technically stay below the 126.05 and the sellers are still in the game for a further probe to the downside. Having said that getting below the 200 hour moving average at 125.485 and the bottom trendline at 125.35 are still key targets to get to and through if the sellers are to take more control.
So there is some clues that there may be a potential topping in the EURJPY. However, more work needs to be done to the downside (get through targets), to increase the bearish tilt.
PS. Taking a broader look at the daily chart, the high price from last week did stall near the swing highs going back to April 2019. The high price from that time came in at 126.787. The high price last week reached 126.745 just below that level.
