Below 100 hour MA and trend line keeps the sellers more in control
The EURJPY is lower on the day and over the last 14 or so hours, has been chopping above and below lows from Thursday, Friday and Monday (between 117.44 and 117.535). The current price is in that “yellow area”.
Can the price of EURJPY move higher?
Sure. Get and stay above the 117.535 area (and show some life above), and we should see more upside momentum as corrective pressures begin again.
Having said that, the 100 hour MA looms ahead (blue line). That MA line comes in at 117.825. The price has traded above that MA last week and this week as well (in fact today) BUT, the price has stalled at a topside trend line (see red numbered circles) at 117.90. Also above is the 50% of the range since September 24 at 117.937 and the 200 hour MA. That MA was broken on September 20 and not breached since that day. All are hurdles that could stall a rally but if each is broken, would tilt the bias higher.
Is it a good time to buy NOW?
No the earliest try for a buy here, would be if the price breaks 117.535 and there is some momentum.
If there is momentum, there should be a test of the 100 hour MA and trend line and maybe even the 200 hour MA. Until then, sellers are holding onto more of the control. ForexLive