Some bull and bear in the chart today
During the NY afternoon session, the EURJPY was at a crossroad against a trend line and the 100 hour MA. I wrote about it here («EURJPY at a key technical crossroad. A break lower could tilt bias back lower.») The price could not break lower at that time, but the rise off the support level stalled at what is a pretty strong ceiling at 133.12. The subsequent break of the trend line and 100 hour MA, turned the buyers to sellers. That 100 hour MA at 132.509 currently is now resistance.
Now…the fall lower today, was able to crack below the 200 hour MA (green line in the chart above — currently at 131.933). That was the first break below the MA since September 12th. The price should have gone lower. It did at first, but the momentum could not be sustained. The price is back above the MA line, and buyers in the NY session have leaned against the level solidifying the level as a key support line today.
As a result, the technical picture has a little bull and a little bear.
- The 200 hour MA at 131.933 is support.
- The 100 hour MA at 132.509 is resistance.
Look for traders to lean against each extreme (buy low, sell high) with stops on momentum breaks.