Skip to main content

EURJPY the biggest mover today. What does that look like on the charts?

#
image
  • The EURJPY is down close to 2% on the day
EURJPY trends lower

The  EURJPY  is the biggest mover on the day. The pair has declined nearly 2% (down -1.97% currently). The current price is at 136.51. The low for the day reached 136.39.

Technically, the day started with the pair banging against the 100 hour MA (blue line in the chart above) and a downward sloping trendline connecting highs from Monday and Tuesday. Both those levels came in near 139.30.

Admittedly, yesterday during the FOMC  volatility  , the price moved above those technical levels, but could not sustain momentum. Sellers started to lean against the levels into the early Asian session today, and then moved away from the levels. That was an early clue for the sellers. Buyers turned to seller after leaning against trendline and moving average resistance.

The move lower moved all the way down to 137.90 before correcting higher.

Looking at the 5 minutes chart below, the corrective move to the upside after the initial low at 137.90, stalled right near the 38.2% retracement at 138.515 of the move down from yesterday's high (see yellow area on the 5 minutes chart below). The inability to get above the 38.2% retracement was another clue that the sellers were in control.

The run to the downside resumed with a stall near the 100 day MA and a lower channel trend line near 137.57. After a brief stall at the dual level, the trend selling resumed and did not stop until reaching the recent low 136.364.

From the high near the close yesterday to the recent low, the move was around 313 pips. Not bad in a short period of time.

EURJPY has trended lower

What now?

Looking at the hourly chart, the move to the low has been able to get below the swing lows from early July between 136.85 and 137.248. That area (see lower yellow area on the hourly chart above) is now close risk.

A more conservative risk level would be the 100 day moving average at 137.574. The last time the price traded below its 100 day moving average before today's break was back on March 16.

It would take a move back above that 100 day moving average to hurt the bearish bias.

Sellers are in control.


Trading analysis offered by RobotFX and Flex EA.
Source #RobotFX Team
Labels:

Comments

Post a Comment

Popular posts from this blog

GBPUSD up and down. Back down testing 61.8% and swing area.

# GBPUSD tests 61.8% and swing area The GBPUSD is in an up and down day. The    GBPUSD  moved higher earlier. That move was helped by better than expected retail sales. However the high price today stalled near the high price from last week near 1.3643, and rotated back lower on the USD buying. The subsequent move lower now has the price back toward the 61.8% retracement along with a swing area between 1.35969 and 1.36034. As I type, the price has dipped below that swing area. What next? If the price can stay below the 1.36034 area, that would be the best case scenario for the sellers with the next major targets coming in at the 100 hour moving average 1.3569 (blue line), and the 200 hour moving average at 1.35609 (green line). The 50% midpoint of the 2022 trading range is just below those levels at 1.35526 and would be a another target on further weakness. A move back above 1.36034 with momentum would have traders looking again toward 1.3618 to 1.36271 and then t...
Post a Comment
Read more