The USDJPY move higher is helping the EURJPY get out of the box
The EURJPY has been confined in a box between 119.76 and 120.40. The price has been trading in that 64 pips range for over 6 days (see post from yesterday).
However today, the price has reluctantly pushed outside of the range, but is putting a little more room between the current price (at 120.567) and the top of the range at 120.404. Now..... Stay above the 120.40 level (or more conservatively the 200 hour moving average at 120.302) and the upside as room to roam.
On the topside, on more momentum above the 200 day moving average at 120.584, will target the 38.2% retracement of the move down from the January 16 high at 120.946. That would be the next upside target. Above that, the January 24 high at 121.253 and the 50% retracement at 121.313 would be eyed.
The buyers are making a play. There is some reluctance at the 200 day moving average. However if the break outside of the box today can hold, the upside has plenty of room to extend further.
