The EURJPY traded lower for two trading days and today there was a corrective move higher. The move higher took the pair into a swing area between 157.902 and 158.091. The high price reached 158.038 and has found willing sellers.
Also near that swing area is in the 100 bar moving average on the 4-hour chart 157.888.
With the price below those levels, traders may look to lean against them as a risk-defining level. That is, as long as the price remains below the swing area, the sellers remain in control.
On the downside, the next major target would come against the 200 bar moving average of the 4-hour chart near 156.797. Below that is a 38.2% retracement of the move up from the end of July low to the high price reached on Monday. That retracement comes in at 156.395.
So stay below the 100 bar moving average at 157.888, or more conservatively below the top of the swing area at 158.091, and look for a rotation back to the downside.
This article was written by Greg Michalowski at www.forexlive.com. Source