Putting the EURJPY volatile price action in your favor.

The EURJPY price action has been trading in a volatile up and down price action over the last few trading days. What has been consistent in the volatility, is the price highs have been stalling near moving averages.

Today, four of those moving averages are near each other between 163.62 and 164.02. Include in that cluster is:

• 100 day MA at 163.62
• 100 hour MA at 163.79
• 200 bar MA on the 4-hour chart at 163.96
• 200 hour MA at 164.02

If the pattern continues where highs have stalled at lower MA level, this is the area traders should look to sell against.With the price at 163.73, the risk is a break above the 164.02 level.

If right and the price does rotate back down, the downside targets come in at the lows from November 8 and November 12 at 163.20 and – if that is broken and the volatility continues – 162.27 would be the next target.

This article was written by Greg Michalowski at www.forexlive.com.