EURJPY stretches to highest level since August 2008

While the USDJPY extends above 144.00, and the highest level since November 2022, the EURJPY traders see that 2022 high and raises it to August 2008.

The EURJPY has moved to a high today of 157.875. The highest level since the week of August 31, 2008. That’s a long time ago.

The BOJ continues to hang onto the yield curve controls and rates near 0%. Meanwhile, the ECB is continuing its hikes with expectations for a hike in July and September (according to ECB sources at least).

Drilling down to the hourly chart below, going back to June 7, the price low stalled against swing lows from May 31 and June 1 before starting its move to the upside. On May 8 to May 12, the price lows started to base against its 100-hour moving average (blue line in the chart below). The rally started.

On June 20, the price corrected down to the 100-hour moving average and found support buyers. On June 23, the price broke below the 100-hour moving average, but could not sustain momentum and then reestablished support against the moving average level on that day and also on the dip yesterday.

Also on the chart, the pair is trading within an upside channel. The topside trend line of that channel is being approached near 158.01 (and moving higher). With the price rise extended, traders often look for reasons to take profit/put a toe in the water. There really is nothing from the weekly chart above or the daily chart (not shown). The channel on the hourly chart provides something to lean against in a trending market. That may give traders some pause for cause (i.e. a level to lean against to take profit or sell an overbought market).

Having said that, a break above the topside trend line should not be faded.

Buyers are in firm control in the EURJPY. There is some topside resistance, at least in the short/medium term at topside channel trend line. Sellers may lean on the test (with stops above). However, getting below the rising 100-hour moving average at 156.41 is still needed to get below and stay below, if the sellers are to take more control.

This article was written by Greg Michalowski at Source