Moved back above the 38.2% retracement
The EURJPY – after a few tests last week – was able to trade below its 38.2% retracement of the move up from the August 20 low. That level came in at 129.666. The price dipped below that level once in the Asian session and later in the London session.
The low price reached 129.589. That was just above the swing low going back to August 31 at 129.586 (which was near the swing area between 129.536 and 129.577).
The price has rebounded and trades back above the 38.2% retracement at 129.666. The level reestablishes itself as support going forward.
On the topside, the falling 100 hour moving average currently at 130.089 is the next target. Recall on Friday, both the 100 and 200 hour moving averages were converged near 130.26. Those moving averages stalled the rally, and the price moved lower into the close.
So in summary, the EURJPY sellers had their shot below the 38.2% retracement, but could not keep the momentum going. The prices back above that retracement level and is currently up on the day. If the buyers continue to push, the falling 100 hour moving average will be the key barometer for both buyers and sellers (at 130.089 and moving lower).