Tests swing levels...
The EURJPY fell in the Asian session, bottomed in the early European session, and retraced the fall (and a bit more). Down and up.
The move higher has taken the price back above the 100 hour MA at 120.08. This is the third time above the 100 hour MA in the last 7 trading days. Last Tuesday, the price moved above the 100 hour MA (blue line in the chart above), but stalled near the 200 hour MA (green line in the chart). The fall back below saw momentum increase and that led to the low on Thursday.
The break above today will be eyed to see if the momentum on the break can be sustained. Stay above is move bullish. Move back below and traders will likely be disappointed once again.
If the pair is going higher from here, not only will traders watch the 100 hour MA but also the 120.33 level above. ON Wednesday, the price stalled at that area, but later in the day fell below the floor. A retest on the same day found sellers against the level (red circle 3). Then again on Thursday the level was retested and held once again (red circle 4).
Today, the the rally higher once again stalled against the line. The 38.2% is also near the level at 120.278.
The pair has had a down and up day but in the process trying to make a case for a bottoming from the recent fall off. Can it stay above the 100 hour MA on the 3rd break? That MA is risk. Can the price get and stay above the 1.20278-33 area. If so, there is further upside room to roam.
