EURJPY trades between the channel trend lines

The EURJPY - which has been on an upward trajectory with the JPY weakness - has seen a corrective move to the downside today.

Looking at the hourly chart, the acceleration higher in this pair increased yesterday on the break of a topside channel trendline. That break sent the price up to a high of 144.245 (highest level since January 2015.

However, momentum died in the New York session yesterday, and sideways price action into the Asian session allowed for the upward sloping topside trend line to catch up to the price. When the pair fell back into the channel, buyers turned to sellers and pushed the price down into the ECB meeting the decision.

Since then, there was a another move the upside. This time, the price held against the topside trend line near 144.08. The price has rotated back lower toward the lower channel trendline, and found early buyers against that extreme.

The lower channel trendline currently comes in at 142.57. The upper channel trendline cuts across at 144.09. The current price is trading at 143.20 between those 2 extremes.

Traders will be looking for those trendlines to provide support and resistance going forward with a break of either extreme likely triggering momentum in the direction of the break.

On the downside, falling below the lower trendline would have traders targeting the rising 100 hour moving average at 141.852. A move below the 100 hour moving average would be the 1st since May 27.

Conversely, a move to the upside -and above the upper channel extreme - and the high price from yesterday, will open the door for further upside momentum. Traders would use the trendline as support. As long as the price can remain above, the buyers remain in more control.

Overall, the buyers still hold the better hand. However, if the upper extreme can continue to find sellers and the lower trend line is broken, that would shift the shorter-term bias in the direction of the sellers. Until then however, the sellers still need to prove that they can take back control after the recent sharp move to the upside.