During the Asian and early European session, the EURJPY witnessed a decrease, with the movement dropping below the 200-hour MA (green line). The noteworthy part here is that yesterday’s price lows rebounded from the 200-hour MA, but just below was the 50% retracement of the uptrend from last week’s low. That level landing at 148.59 and buyers leaned there and pushed the price back higher.
In today’s session, despite breaking below the 200-hour MA – a significant shift – the price could not get below the lower 50% retracement level at 148.59. This situation resulted in sellers turning into buyers, causing an increase in the price in the late European and US session..
Today’s upward movement went beyond the 100-hour MA (blue line) and remained above this level throughout the US session, currently at 149.57. If the price can maintain this level, buyers have full control. Looking higher, the day’s Asian session high at 150.13 serves as the next target.
Summing up, sellers had an opportunity with the price drop below the 200-hour MA but missed their chance. Now the question remains whether buyers can keep the price above the 100-hour MA. This is the primary technical question at play.
From a conservative standpoint, the question for buyers is if the price can maintain above the 200-hour MA at 148.988 (round it off to 149.00). If it can, then the buyers are likely to have stronger control.