Bounce of lower trend lines on daily, hourly and 5 minute chart
Here is the daily chart for the EURJPY. Note how the price bounced off a trend line connecting lows going back to March
Below is the hourly chart for the EURJPY. Note how the price bounced off a lower trend line connecting lows from May 20, May 23rd. The price moved a little below the trend line but reversed quickly
Below is the 5 minute chart connecting lows from late yesterday and today. Like the daily and the hourly, at the lows, the pair bounced off lows.
The bottom was set at the same/similar level on 3 separate time period charts.
The question now is can the pair go higher?.
Staying on the 5 minute chart above, the price has just moved above the 100 and 200 bar MAs (blue and green lines). That is bullish intraday. It also defines close risk. So if the pair can stay above that yellow area (down to 121.86 area), the buyers have a shot for more of a correction move higher.
SUMMARY: It is not very often that you get the 5 minute, hourly and daily chart with converging trend lines within pips of each other. That low at 121.58 area was a key technical level.
Does the convergence of those trend lines, now set the bottom and lead to an even larger correction higher in the EURJPY?
Well, the 100 and 200 bar MAs on the 5 minute willl be a new barometer for the bulls and bears.
- Stay above the 121.918 and 121.866 levels and bulls are taking back more control from the sellers.
- Move below and waters may be a bit more muddy.
