Below the 50% of the 2018 trading range.
The EURJPY has broken out of the 10 day trading range. In the process the pair took out the 38.2% of the 2018 trading range at 135.048. This week there were 3 looks below the 38.2% retracement level. Each were quickly reversed. The last 3 hourly bars has moved and closed below that 38.2% and floor area. For traders looking for more downside, that area is now risk.
Taking a longer look by looking at the daily chart below, the pairs lows today approached a key target area (the low reached 134.53 so far).
The area is defined by swing highs going back to September, October and the beginning of December in 2017. The swing highs in those months came in at 134.37 to 134.49. The 61.8% of the move down from the 2014 high to the 2016 low comes in at 134.385 as well.
IF the sellers on the hourly chart are to get more downside/breakout satisfaction, the 134.37-49 area also needs to be broken. IF not, and buyers lean against the level, the buyers and sellers will battle between the 135.05 above and the 134.37-49 below.
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