The EURJPY has been forming a ceiling over the last few weeks of trading. That ceiling comes between 163.478 and 163.60. Today’s high stalled against that level and rotated to the downside. The current price trades at 163.293.
Although lower, there is a key target on the downside that needs to be broken if the sellers are to take more control. More specifically the rising 100-hour moving average comes in at 162.960.
Last week on Thursday, the price moved below the 100-hour moving average for the first time since October 2,. The price did move lower, but could not extend to the low price from Tuesday’s trade at 161.872. The low price could only reach 162.18 before rotating back to the upside.
On Friday, the price move back above its 100 hour moving average, tilting the bias back to the upside and leading to the retest of the ceiling area.
What next?
Falling below the 100-hour moving average would tilt the bias more to the downside once again. A move below that level would next have the
200-hour moving average at 162.59 as the next target The low price from Thursday at 162.180, and theLow price from Tuesday at 161.872 as the next key targets.
Conversely, if the price cannot get below the 100-hour moving average, it would only be a matter of time before the ceiling is broken at 163.60.
This article was written by Greg Michalowski at www.forexlive.com.
