Some positive technicals for the EURJPY on the hourly chart
The EURJPY moved to a new session high in the current hourly bar, and in the process tested the Friday high at 121.925.
ON the first test, the high reached 121.914 and backed off as traders leaned (with stops likely on a break above). A break above is needed to get more buying interest with the 38.2% retracement of the move down from the June 28 high at 122.09 and the 200 hour moving average at 122.12 as the next upside targets.
The pair, although lower earlier in the day, did show some bullish tendencies/signs.
- The low for the day extended below a lower trend line but failed and that helped to turn sellers and buyers
- The price moved back above the 121.644 level (see blue numbered circles in the chart above). That level was a key swing level going back to the June 18 to June 25 time period
- The price moved back above its 100 hour moving average and successfully stayed above over a few hours of testing (see blue line at 121.694 currently).
Now with the test of Friday's high, it needs one more push to attract more buying interest. Failure to do that, and the buying interest will fade, and we instead could see a retracement back down toward the 100 hour MA on the disappointment.
For now, the battle is on against the 121.925 level.
