The EURJPY is trading to a high of 159.608 in trading today. That is a new high for the year and new high going all the way back to September 2008 when the high price in that month also reached 159.608. The high price from July 2023 extended up to 158.043. This month, the high price before today, reached 159.484.
Drilling to the hourly chart below, yesterday the price action saw the pair hold its 200-hour moving average (green line in the chart below). The price spiked higher but then fell back down toward the 200-hour moving average only to find buyers once again before rebounding into the close (see video from yesterday HERE).
Today, the momentum to the upside has now taken the price of the EURJPY move above the August highs including a swing area between 159.19 and 159.32, and the high price from August 22 at 159.484. Those levels are now close risk for buyers looking for more upside. Staying above would keep the buyers in firm control. Move below and there could be disappointment on the failed break.
With the price at 2008 highs, there isn’t a lot to grasp from a technical perspective with regard to targets. What traders can focus on instead, is the risk. As long as the price remains above the aforementioned support levels, the price action can continue the upside momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source