The 61.8% retracement of the move up from last week is also in play
The EURJPY shot higher last Thursday after the pair broke above its 200 hour moving average for the 1st time since April 13. The run to the upside peaked at 117.764. In trading on Friday, the price stalled just ahead of that high at 117.755.
Today, the pair open lower and continued its run to the downside. The 1st stop stalled at the 50% retracement of the move up from the low last Wednesday. That level came in at 116.603.
After a modest correction back toward the broken 38.2% retracement at 116.877, the pair has subsequently fallen to retest the 100 hour moving average at 116.444 (blue line in the chart above) and the 200 hour moving average at 116.33. Also at the 200 hour moving average level is the 61.8% retracement of the move higher from last week's low.
There is some stall against the area. It will take a move below both moving averages to open the door for more selling momentum.
Meanwhile, dip buyers will be looking for a move back above the 50% midpoint at 116.6032 give comfort that perhaps the low is in place for now at least
