Since peaking on January 16, the EURJPY has fallen near 300 pips
The EURJPY peaked on January 16 at 122.865. That was the highest level in the pair since July 2019. Since then, the price has been lower on 5 of the last 7 trading days (from high to low the move has been 293 pips).
Today the pair traded to the lowest level in 42 trading days extending back to November 26th. In the process, the price has also moved back below the 100 day MA at 120.279. You have to go back to November 15 for the last time the price trading below that moving average level. Since October 16, the price has only traded now 3 days below its 100 day moving average (72 total trading days).
As a result, the break today is significant. Stay below gives the bears/sellers more control.
If the price can stay below the 100 day moving average the next targets would come in at the November lows at 1.19633 and 119.246. Between those sits the 50% retracement of the move up from the September low at 119.363.
Drilling to the 4-hour chart below, the price action today has been mostly below the 100 bar MA on the 4-hour chart at 120.279. The 120.168 was swing lows from January 3 and January 9th. We are currently back below that level (traded above and below it over the last 5 bars). If the price can stay below, we could see more downside probe.
