Trades between the 100/200 hour MA
Yesterday, the EURJPY fell back below its 100 hour moving average (blueline currently at 131.691). The attempts to move back toward that moving average yesterday and into the Asian session today fell short of the line. Sellers started to lean and push the pair lower.
That moved the price to the 200 hour moving average (green line) currently at 131.13 (a lower trend line was also in the area). The low for the day reached 131.138.
The price is now trading up 131.371 between the MA levels.
The holding of the 200 hour moving average and trend line, set the support level for the pair. A move below, and I would expect stops to be triggered with the 50% of the move up from the 23 low at 130.971 as the next target.
On the topside, the flattening 100 hour moving average at 131.691 is now the upside resistance.
When the price trades between the goalposts defined by the 100 and 200 hour MA, it suggest “the market” is unsure of the directional bias. The relatively wide spread between the MA’s, also gives traders some apprehension to push too low.
As a result, the pair’s price can trade between the goal posts until that time the “market” is more comfortable with a break either way.