EURJPY is currently witnessing a notable shift as buyers are increasingly asserting their presence. They have successfully pushed the pair above a critical swing area, which spans between 156.78 and 157.04. Furthermore, the price has managed to climb above the 100-hour moving average, marked at 157.123. This movement also includes fluctuations above and below the 38.2% Fibonacci retracement level, derived from the downward trend commencing from the high on November 16.
However, a challenge has emerged in maintaining this upward momentum, particularly around the 38.2% retracement level. Despite this, the sustained position above the 100-hour moving average and a gradual ascent from this level are encouraging signs for the buyers. It signals an increasing control over the market dynamics.
Looking ahead, traders are now turning their focus towards significant resistance levels. Notably, the 50% midpoint of the downward move from the November 16 high converges with both the 100-day moving average and the 200-hour moving average, creating a critical resistance zone between 158.69 and 158.90. The consolidation of these levels indicates a robust barrier, but with buyers gaining momentum, they are seemingly poised to challenge this resistance.
In my video analysis, I delve deeper into these important levels and targets, explaining their significance and the implications for EURJPY’s market trajectory. I discuss why these specific points are pivotal for understanding the current market play and what they could mean for future price movements.
This article was written by Greg Michalowski at www.forexlive.com. Source