The EURJPY found support buyers against the 100 hour MA and 50% retracement in the early Asian and London sessions and got an extra boost on expectation for BOJ action. The price move has taken the price above the most recent consolidation range at the 100.80 area. However, the move above this level has found profit takers on the surge and the pair has retreated to intraday support (high reached 101.11).
Looking at the 5 minute chart (see chart below), the last trend like leg higher has corrected to the 38.2% of the move higher at the 100.76. The midpoint of that leg higher comes in at the 100.65. Stay above this area and the bulls remain in control (the bears have not proven they can take back control). A move below this area would put into question the power and conviction of the buyers.
With the Fed on tap at 12:30 PM ET, risk is definitely increased. Overall, the midpoint of the days entire range comes in at the 100.466 level. This also was the high from yesterday, was a high intraday today and was used as support before surging higher today (see chart below). If the price falls below this level on the announcement, it would not be a good technical sign for the bulls. I would expect sellers/stops below this level.
In the meantime, so far so good for the bulls.
