There is a mixed picture but sellers more in control
The EURJPY technicals are showing some mixed signals depending on your view. I would give sellers a bit more control though.
Looking at the daily chart, the pair fell jumped below a lower trend line, currently at 121.49. The high price today reached 121.40. Staying below that trend line keeps the sellers in control. Yes...we are up today, but the price needs to get back above that level.
Drilling to hourly chart, there is some reason to feel a little more bullish.
Looking at the chart below, the price today did move above its lower broken trend line from recent data. That line comes in at 121.19. That gives buyers some hope that the market is due for a correction higher with the 121.49 on the daily a key target, followed by the 121.55 which is the 38.2% of the move down last week. The 100 hour MA is at 121.71 and would be another target on more upside momentum.
Admittedly, that broken trend line was broken on Friday and failed on each attempt (see red shaded area). So staying above would be eyed now for the buyers looking for a rebound.
SUMMARY: There is some hope for the dip buyers as the jump below the lower trend line seems to have run out of steam.
However, a similar lower trend line (going back farther) on the daily chart has still not been broken.
Traders looking for more corrective upside action can eye the 121.19 as a risk level.
For bears, watch 121.49. A move above would muddy the bearish waters and should solicit more buying as the pair recovers back above the broken trend line.
