Price of the EURJPY breaks below the 200 day MA for the first time since June 22, 2020
The EURJPY fell below its 200 day MA at 128.953 today and has continued to a intraday low of 128.492. That break – and trade below the key longer-term MA – was the first since June 22, 2020. The break tilted the bias more to the downside.
The low price todayhas entered into a swing area from highs and lows going back to February and March and again in July between 128.18 and 128.586(see yellow area and red numbered circles in the chart above). That range is fairly wide, but there have been a number of swing levels within that area (see red numbered circles).
Drilling to the hourly chart, the swing low going back to July 20 reached 128.586. The price has moved back above that level after trending to the days low at 128.492. However, the correction off the low has been limited. The 38.2% retracement of the move down from Friday’s high comes in right around the 200 day moving average near 128.950. Just below that at 128.88 sits the low from July 19. That is the risk area for shorts now. it will take a move above that level to give the dip buyers more control. Absent that, and the sellers are still in control.