Testing support at 124.24 to 124.294
The EURJPY has been moving up and down over the last 3 days of trading. The most recent high came on Friday with a spike up to 125.197. Yesterday the high price was lower at 125.041. Today the high price was below the Monday high at 124.993. So there are progressively lower highs over the last few days of trading.
The inability to extend higher has sent the price lower over the last 4 trading hours. The move lower has taken the price back down to test a swing area between 124.24 and 124.30. Also in that swing area is the 38.2% retracement of the move up from the July 24 low at 124.294 AND the rising 100 hour moving average at 124.249.
The cluster of support is currently being tested. Key area for both the buyers and sellers.
Should the price hold, traders will be watching the 124.552 area as a bias defining level. That was the low in the early Asian session. Stay below keeps the sellers more in control.
On the downside, a break of the cluster of support would next target the
- Lower trend line at 124.06.
- The 50% retracement at 124.015 and the low from yesterday at 123.983, and the
- 200 hour moving average at 123.90
Move below those levels and sellers are taking more more control.
Taking a broader look at the daily chart, the run to the high on Friday also broke above the June high price at 124.417 and took the price to the highest level since April 2019. At stake with today’s decline to support on the hourly is whether or not the break is a failed break or not.