Moves above the 61.8% retracement and swing area. Can the momentum continue
The EURJPY it is trading to the highest level since January 22 and continues the run to the upside started yesterday.
Looking at the hourly chart, the pair just moved above a swing area at the 121.145 to 121.252, but only by a few pips (the high reached 121.29). The 61.8% retracement is also in that area at 121.18 (of the move down from the 2020 high on January 17). The price has backed off a bit, but remains within that swing area. A move back below the swing area may lead to some more corrective activity.
Yesterday, the EURJPY extended up to its 100 day moving average at 120.533 currently) and backed off. Today, the price has been able to push higher and away from that MA (and the 200 day MA as well at 120.354). That is more bullish and gives the buyers more control. If the swing area does stall the rally here, those MAs will be key a key support target. For now though, the buyers are in more control.
The EURUSD helped to move the EURJPY higher. It cracked above its 100 hour moving average at 1.0817, but backed off a bit on the first break. It will take a move above that MA to give buyers more confidence. The price has not seeing an hourly bar close above its 100 hour moving average since February 4.
