The EURJPY moved above a swing area and ceiling area between 159.19 and 159.32 toward the end of yesterday and in the Asian-Pacific session today tried to stay above that area as well.
However, momentum could not be sustained passed 159.484, and buyers eventually turned to sellers in the early European session and forced the price to the downside.
In the US session the price has continued its move to new session lows where the pair’s price is testing a lower swing area between 157.90 and 158.046. Also in play is the rising 100 bar moving average on the 4 hour chart (see blue line in the chart below). The low price has reached 159.09 (just above the high of that area) and is bouncing modestly (see red numbered circles on the chart below).
It will take a move below the 157.90 level to increase the bearish bias technically. Absent that (and buyers are leaning against the lower swing area), and buyers and sellers will battle it out between the two swing areas (green numbered circles above and red numbered circles below).
This article was written by Greg Michalowski at www.forexlive.com. Source