100 and 200 hour MA contains the pair for most of the trading day
The early hours of trading in the EURJPY today, was able to extend above the 200 hour MA (green line currently at 129.298) but could not get above the high from Friday, nor the 50% of the day’s trading range.
That early failure, tilted the pair back to the downside. The fall took the price down to test the lower 100 hour MA (blue line) where buyers leaned against the support (the underside of the broken trend line was also in the area).
The rest of the day has seen the price chop back toward the higher 200 hour MA. This time, traders have leaned ahead of the level. The price has remained below the level as once again traders leaned with risk defined and risk limited.
The pair remains near the upper limit. It will still take a move above the level to give the buyers more of an edge. With that, they will target the highs from Friday and today AND the 50% retracement (at 129.471).
Traders who are short, don’t want to see that level busted. They will instead want to see the price rotate back toward the 100 hour MA. If approached, the story will shift toward buyers leaning there once again until that time one of the MA extremes are broken.