EURJPY Tests Key Support Area And Finds Some Profit Taking Buyers
105.78-91 is a key level for the EURJPY.
- 105.918 is the 38.2% of the move up from the 2012 low
- 105.78 is the 200 day MA
On Tuesday, the price fell below both these levels on the way to the weeks low at 105.43. However, momentum could not be sustained and the price rebounded (to 107.08 today). The move out of risk today has pushed the EURJPY back to the downside support level.
The low today actually pushed below the key 200 day MA (low reached 105.735). This should give sellers cause for pause on the failure. As a result, I would expect to see profit taking buying on dips against the level now, with stops on a break of the lows at the 10573 level. On a correction, I will be eyeing resistance against the 106.115-106.232 area (see chart below)