Bears trying to push
The EURJPY fell to new session/ week lows after finding resistance sellers against the 100 hour MA both yesterday and today (see tops in the chart below).
The subsequent fall took out head and shoulders neckline support AND the 100 bar MA on the 4-hour chart (see blue line marketed H4 MA:100 in the chart below) at 114.11. That should have triggered more selling. It did. the low reached 113.909. However we are seeing a bounce back. Will the break fail?
The price rebound in the pair may be attributed to the USDJPY. As mentioned earlier, the 100 day MA and 200 hour MA was a key technical level (the price has traded above and below the 100 day MA the last 5 days of trading). That 100 day MA has so far held (attracted buyers). Did the EURJPY fall to new lows get a little ahead of it's skis? Should it have waited for a break lower in the USDJPY to lead the way?
It seems it may have done just that. The EURJPY is trading at 114.21 now and the USDJPY is moving back up and away from the 100 day MA as well.
Now that rally in the USDJPY may stall against resistance at the 103.61 area, and start to head back down. That should re-pressure the EURJPY and lead to another break lower (this time for real especially if the 100 day MA on the USDJPY can be broken). However, for the time being the break of the EURJPY seemed to be a bit premature.