124.04-18 is resistance
The EURJPY is moving higher as both the EURUSD and the USDJPY move higher in trading today (maybe the EURJPY is the tail waggin the dog too).
In any case, the pair is moving closer to the a key ceiling area for the pair. The last 4 swing highs going back to May 2016 and December 2016 saw the price stall between 124.04-18. The high just reached 123.91. Getting closer.
Traders who have been riding the pair higher (the pair bottomed last week against the 100 day MA at 120.628 area), may look to lighten up against the key level with stops on a break above.
IF there is a break, the next targets come in at 124.68 and then the 50% of the longer term move down from the June 2015 high. That level comes in at 125.283.
Drilling to the hourly chart, the buyers have been in control in this pair. Since the French election, the pair has been marching higher. Last week when the price was bottoming against the 100 day MA, it was also bottoming against the 100 hour MA too (see chart below at red circle 2). That was a key support hold that gave buyers the go ahead to move higher.
A trend line has been broken twice over the last few days, but support held today against a swing high from yesterday. The dip below the line yesterday, was quickly reversed. That trend line comes in at 123.44 (and moving higher). Closer support comes in at 123.64-66. That level represents the high from yesterday and earlier highs from today.
Buyers in control, but key resistance ceiling approached.
