EURJPY tests the swing highs from December
Price runs higher to test swing area at 122.494 to 122.643
The price of the ERUJPY is up about 82 pips on the day. That move has taken the price above its 50% retracement at 121.675 (of the move down from the March 2019 high). The high has reached 122.49.
That high for the day is just shy of the swing highs from December at 122.494 (from December 27th) and 122.643 (from December 17th). The price is just off that level at 122.46 currently.
I would expect that there may be some patient sellers who would be leaning against the low risk area with a stop on a break above the 122.643. Those are the low risk traders.
Drilling to the hourly chart below, the good news for the bulls is that
- the low on Friday, was near the low on Thursday.
- The price moved above its 200 hour and 200 day MAs on Firday and stayed above (see green lines at 120.94 area
- The price moved above the 100 hour MA (blue line) on Friday, and based near that level today
All that is bullish. So buyers area in the drivers seat now.
Do those buyers have the power to get above and stay above the December swing levelsl? If it can, there is room to roam to the upside.