EURJPY

In reviewing the Euro Yen pair into the Japanese close and the European open, we notice the pair trading heavy, with the Yen trading better across the board. Examining the 4 hour chart from the lows to the highs for July, we notice the Yen testing the 61.8% retracement level above the 167 handle. Please note the pair has broken the 38.2% and 50% retracement levels as well as the 200 day moving average the first day of August.

The EURJPY is moving back higher and is now above the July 14th high of 169.65.  Earlier the pair reached a a 16 plus year high level of 169.90 near the NY open.  However, it sold off back below the 169.65 level as the market corrected on the back of a weaker USDJPY.  

Now another move above the level is in the works as demand for the EURUSD continues to support the pair and the correction in the USDJPY has reached a level of support.  Shorts may start to feel the pressure again soon and be forced to cover.  

The EURJPY cross is being supported by a stronger stock market.  

EURJPY is testing 100 hour MA resistance at the 167.67 level.  A break above will target KEY resistance at the 168.00-168.02 level.   The 200 hour MA comes in at 168.02.  Also, the 61.8% retracement level of the move down from July 14th comes in at 168.00 (see chart above).  Expect sellers against this KEY LEVEL.

The pair is above the 50% Retracement of the move down from the July 14th high.  That level comes in at 167.47 and will be watched for early support. 

The EURO YEN has been trading in a strong channel on the 4hour chart since the lows seen 2 months ago at the 158.58 level. With the 50-day and 100-day moving average converging and the Yen receiving a bid across the board late in Asian trading today, the Euro/Yen has an opportunity to test support at 166.11 level in the short-term, which you can tell it attempted twice toward the end of June but failed to penetrate.

The EURJPY has moved lower after running into resistance at the 167.72 level.  The 100 and 200 hour MA are both at the level as is the 50 % retracement of the last move lower (at 167.75). 

Seller are in charge for the short term as they sell against this key level.  A break higher, however,  should solicit buyers and a resumption of the longer term bullish trend for the pair

The EURJPY is off to a fast start moving up to test the 200 hour MA at the 167.80 level.  The pair made all time highs last Thursday morning before sellling off later in the day and into Friday.   A move above 167.80 would target the 100 hour MA at 168.17 and the 50% retracementl level at 168.23.   Longer term, the pair is still largely bullish. 

The low ticked 169.91 but bounced up from there.   See earlier post for support level (CLICK HERE)

The EURJPY has moved to new alltime high levels reaching a high of 169.45 overnight.  The old high price was 168.92.  The last move higher on the hourly chart came up short of the previous high and the last two hours have been down.  The market will be watching to see if the old high of 168.92 can hold. 

The EURJPY continue to move higher as investors like the yield differential of the high yielding EURO versus the weakening Japanese economy where rates may not be coming down, but the chances of rate increases are not on the horizon. 

The pair will use the 168.92 as the level to hold on the downside.  If the market moves back below this level, the market should back off.  Until then, the trend stays in tact.