$EURJPY falls sharply after failing at 100 day MA
We have been looking at the EURJPY over the last few days as the price has been hanging aroung the 100 day MA. Yesterday, the pair corrected higher on strong EURO demand (EURUSD and EURGBP both rose). The price move higher took the pair back to the 100 day MA and above but the topside was stopped at another key level we watch – the 200 hour MA (see hourly chart below).
Today, the price has trended down and is now testing the 200 day MA at the 132.03 level. The low extended to 131.81 but the price has moved back up. Look for dip buyers against the level with stops on moves probably below the 131.81 level (it may be down below the lows). However be careful as the bias is to the downside. A corrective move should find resistance at the 132.42 level today.
Overall, the price move away from the 100 day MA is what we were anticipating. The price has traded above and below the 100 day moving average for 14 of 17 days. Usually, the price gets tired hanging around a key moving average for so long. As a result, with the price now below the 100 day MA and testing the 200 day moving average I would expect to see sellers on rallies.
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