The 109.76-80 has been broken. November lows eyed now
The EURJPY made a run higher after trading in a narrow box for about 8 days. That box was broken at the 120.40 area. The price last week extended up to 121.145 before rotating back to the downside in the 2nd half of last week’s trading.
On Friday, the price fell back below the pairs 200 day moving average (green line currently at 120.499) and the 100 day moving average (blue line at 120.397).
Today the price tried to correct back toward the 100 day moving average (the high price reached 120.333) but fell short by about 6 pips. That gave the sellers the go ahead to push lower, and have since taken the price down below the lower extremes from January at 119.76-801. We currently trade at 119.713.
With the recent break of the 119.76-801 area, traders will now watch to see if that level can hold resistance. Stay below and the bears remain in control.
On the downside, the swing low from November 22 at 119.633 is the closest target to get to and through. Below that and traders will be looking toward the November 14 swing low at 119.246.
Taking a look at the daily chart, the 50% retracement of the move up from the September load to the January high comes in at 119.363. Also keep that level in mind on further weakness.