EURJPY trades above topside trend line
him him him him The USDJPY has moved higher and higher and higher today. The pairs run higher is not alone. Other JPY crosses have also have extended runs to the upside.
The EURJPY is currently trading up 138 pips and near the session highs. The trading range for the day is 156 pips. That is well above the 60 or post so pip trading range that has prevailed over the last 22 trading days (see charts above).
Technically, looking at the hourly chart below, the price rise has been able to take out technical levels in with little in the way of resistance.
- The 100 hour moving average is broken at 118.97 (blue line in the chart below)
- The 200 hour moving average was broken at 119.46 (green line in the chart below)
- The 50% retracement and trend line on the hourly chart was broken at 119.80
The run higher has now stalled near the 61.8% retracement of the move down from the February high to the February low at 120.117. The high price for the day has so far reached 120.12. We currently trade at 119.944. So there is some resistance to the upside.
Risk for longs looking for more upside would be at the 50%/trend line level at 119.80. Stay above and the bulls remain firmly in control at least from an intraday perspective.
On the topside, a break of the 120.12 area would next target the 200 day moving average at 120.361 and the 100 day moving average at 120.494. That area (see yellow area in the chart below) should be a tough nut to crack on the first test.
