The USDJPY is non trending. So is the EURJPY
In an post, I spoke to the USDJPYs narrow 18 pip trading range but how the price has been able to maintain more of a bullish bias.
The EURJPY is somewhat non-trending with only a 40 pip trading range on the day and ups and downs the order of the day.
However, there is a modest bullish tilt to the pair.
Looking at the hourly chart, the price on Friday bottom near a lower channel trendline. That trendline was once again tested on Monday. Holding the level gave buyers the opportunity to defined and limited risk. They pushed the price up yesterday and technically took the price above the 100 hour moving average (blue line) AND 200 hour moving average (green line by the close. Bullish.
Today, the price initially continued that moved to the upside, and in the process, moved above the topside channel trendline, but stalled within a swing area between 133.60 and 133.749. The high price today reached 133.672 – between those two levels. The subsequent price fall came down to test the 200 hour MA (green line at 133.286). Holding near that level, kept the buyers with more control.
Having said that the buyers have more to prove. More specifically, they need to push back above the 133.603 to 133.749 area. Get above that level at traders will be targeting the swing highs from May and into early June between 134.058 and 134.117.
Those levels are the highs for the year and also the highs going back to February 2017.
So overall buyers have an edge above the hourly MAs below, but with more work to do. Get above 134.117, and the potential for further gains – and the bullish bias – increases.