EURJPY moves above 130.00. Breaks 200 hour MA and 50% retracement at 129.94.
The USDJPY and EURJPY has squeezed to the upside in the last few minutes of trading.
The USDJPY has moved above both the 200 hour moving average and the 100 hour moving average (green and blue lines in the chart above) on the back of better US data today. The move higher has extended the trading range from a dismal 31 pips. The range at 45 pips is still low compared to the 22 day average range of 87 pips. So there is room to roam today.
Traders should now look for support against the 100 hour moving average at 119.71 currently. I would expect that if the buyers are to remain in control, that this level should now provide support for the pair. The 50% retracement of the last move higher, and the 200 hour moving average at 119.638, and 119.589 respectively should also provide support. Look for buyers on dips (or so I would expect) with stops on a break back below the 200 hour MA.
On the topside, there is not a whole lot of resistance. The 120.13 level (maybe) and trend line at 120.26 are topside resistance.
The last surge to the upside, was also joined by a move higher in the EURJPY. If is now back up testing the 130.00 level, and in the process has moved above both the 200 hour moving average (green line in the chart below) and the 50% retracement of the move down from the March 24 high. Those levels come in at 129.94 and will be eyed as close support now.
On Monday and Tuesday, the pair was in this area (high extended to 130.23) but stalled. The 1.3023 level, along with the the 130.41 level would be the next upside targets should the price be able to keep the buyers in control (watching close support at 129.94).
PS Disclaimer. The Good Friday and Easter Monday holiday is getting close to starting in Europe in a few hours. This, coupled with the US employment report, could contribute to choppy market conditions going forward.
