The EURJPY moved higher on the USDJPY higher today. The JPY is the weakest of the major currencies, which also helped propel this pair higher (JPY lower).
Technically, the pair was able to break above its 200 hourly moving average for the first time since July 25th.
Yesterday, the price rose towards this moving average, but found sellers willing to oppose it and fell back towards the flattened 100 hourly moving average (blue line in the chart above). After swinging high and low in yesterday’s New York session and the morning Asia/London session, the bullish pairs ignited following the US jobs report.
The upper movement extended above the
- 38.2% retracement at 136.798,
- yesterday’s trade high at 136.92, and
- July 29 swing high at 137.319.
The high price so far reaches 137.75. This was within 10 pips of the 50% midpoint of the decline from the July 21 high at 137.85. The 100-day moving average is just above this level at 137.93.
Ultimately, if the bull run is to continue higher, breaking above the 50% and 100 day moving average would be key levels to hit and break through.
US stocks returned lower, with the NASDAQ leading the way in what has been volatile so far. This gives some reason to pause for the EURJPY. The price has moved back towards the July 29 high at 137.319, but is finding support against this level. If the pair can continue to hold support against this level, a return to the 50% 100-day moving average is still a possibility. Move below this level and traders will look towards 1.36925. Beneath that is the aforementioned 200 hourly moving average at 1.36549.
A return below the 200 hourly moving average would be a big disappointment after today’s upside break.