The EUR/JPY pair rallied earlier today, breaking above the 100-hour moving average (solid blue line on the chart below) in the process (currently at 166.679). The subsequent move extended towards the 100-day moving average (gradient blue line on the chart below) in the Asian and early European trading sessions, but failed to reach this target at 167.98. The high reached 167.89 – just 9 pips from the target moving average level. The sellers were leaning forward towards the key level.
The subsequent downward move extended to the 100-hour moving average as buyers initially bought against the level near the start of the US session.
The stock sell-off and reports of Bank of Japan moves pushed the yen higher and pushed the EUR/JPY pair below the 100-hour moving average at 166.679, as buyers returned to selling.
The price has now reached a low of 165.44, and the lowest price recorded last week was 164.82.
A move below this level would have traders looking for a 50% retracement of the move up from the December 2023 low. This level comes in at 164.288. The ascending 200-day moving average (lower green line on the chart below) is below this level at 164.06.
