EURJPY stalls against its 100 hour MA
The EURJPY based near lows from last week at 122.478 and other lows from May 13 and May 14 at 122.54. That area (lower yellow area in the chart below), was the floor for trading today. The price wandered higher off that base, giving the dip buyers some satisfaction.
The rise, however, has run into resistance at the 100 hour MA (blue line) at 122.915 currently. The last 8-9 hourly bars, have seen traders lean against the MA line, but has failed to go above.
Yesterday, there was an ever so slight break, of the line, only to fall off. On Tuesday, there was a bigger break, but after extending higher and remaining above the MA line for about 9 hours, the pair fell back below.
If the buyers are to take back more control from the trend move lower, the 100 hour MA needs to be broken and stay above.
Then the focus will be toward the upper trend line and the 200 hour MA (green line) at 123.174. Apart from a brief rise above that longer MA on May 1 and May 2, the price has not really traded above the 200 hour MA since April 18 when it was up at 125.94. That is over 300 pips ago.
Failure to get above those MAs, keeps the sellers more in control.
On the downside, the 122.478-54 is the key level to get and stay below. It is home to 6 swing levels (see red numbered circles). The price did trade below it yesterday, and did go down to 122.076 on the break. That will be the next target if the 1.22478-54 can be broken.