Technical Analysis


The pair trades with a lid but has its ups and downs too

The EURJPY fell to new lows going back to Jan 12 earlier today and then raced higher. The run up in the EURUSD helped the run higher. GDP was pretty healthy in the EU.  CPI in Germany was not that great.

The run higher took the price back above a “floor-ish” area around 135.048 but stalled the rally just ahead of the 100 hour MA (blue line in the chart above) at 135.237. 

The price is currently back below both levels. Can the sellers keep the pressure on now? 

Shorts can lean against the 135.05 as a close level or the 135.237 level (100 hour MA).  IF the price is doing lower, staying below those levels keeps the sellers more in control. 

Taking a broader look at the daily chart, at the lows today, the price did move below swing highs from 2017. They came in from 134.49 down to 134.37. The low today reached 134.12.  That failure is a concern and contributed to the run back higher.  If the pair can restart a downside move, that area will be eyed once again, and if the price is going lower, it needs to be broken, and STAY broken. 



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