The EURUSD has raced above the 2017 high at 1.15826, the natural 1.1600 level, and also above the old trend line (that line was breached on Tuesday but failed). The pair has also moved above the 2016 high price at 1.16156. The high just peaked at 1.1630. We are quickly back to 1.1615 currently after the trigger of the stops.
Support will now be eyed at the 1.1600 area and then the old 2017 high at 1.15826.
The move lower in the USDJPY has been mirrored (sort of) by a tumble in the EURJPY. That pair has been getting bullish interest from analystsBAML and Soc Gen have been promoting the long side). However, the technicals just did not support the upside in trading today.
Looking at the hourly chart, the price could not extend above the 200 hour MA yesterday. That would be ok if the 100 hour MA could hold support. It did not.
Moreover, buyers gave up fully, on the break of the lower trend line at 128.86. Buyers turned to sellers and the price has moved to test the lows from last week at 128.59 (from Friday). The low on Thursday comes in at 128.48.
The USDJPY is trading below the 100 and 200 day MAs at 111.756 and 111.807. The low traded to 111.677. Stay below the 111.807 level now and the sellers are more in control.
Looking at the 4-hour chart above, the price is also traded below the 200 bar MA on the 4-hour chart at 111.735. The next targets are at the 50% of the move up from the June 14th low. The 111.43 is the lower trend line. The 61.8% of the same move higher comes in at 110.963 (close enough to 111.00).