The EURJPY is the most important mover on the day. The pair has declined almost 2% (down -1.97% at present). The present worth is at 136.51. The low for the day reached 136.39.
Technically, the day began with the pair banging towards the 100 hour MA (blue line within the chart above) and a downward sloping trendline connecting highs from Monday and Tuesday. Each these ranges got here in close to 139.30.
Admittedly, yesterday through the FOMC volatility , the worth moved above these technical ranges, however couldn’t maintain momentum. Sellers began to lean towards the degrees into the early Asian session as we speak, after which moved away from the degrees. That was an early clue for the sellers. Patrons turned to vendor after leaning towards trendline and shifting common resistance.
The transfer decrease moved all the best way all the way down to 137.90 earlier than correcting larger.
Wanting on the 5 minutes chart beneath, the corrective transfer to the upside after the preliminary low at 137.90, stalled proper close to the 38.2% retracement at 138.515 of the transfer down from yesterday’s excessive (see yellow space on the 5 minutes chart beneath). The shortcoming to get above the 38.2% retracement was one other clue that the sellers have been in management.
The run to the draw back resumed with a stall close to the 100 day MA and a decrease channel pattern line close to 137.57. After a quick stall on the twin degree, the pattern promoting resumed and didn’t cease till reaching the latest low 136.364.
From the excessive close to the shut yesterday to the latest low, the transfer was round 313 pips. Not unhealthy in a brief time frame.
Wanting on the hourly chart, the transfer to the low has been in a position to get beneath the swing lows from early July between 136.85 and 137.248. That space (see decrease yellow space on the hourly chart above) is now shut threat.
A extra conservative threat degree can be the 100 day shifting common at 137.574. The final time the worth traded beneath its 100 day shifting common earlier than as we speak’s break was again on March 16.
It will take a transfer again above that 100 day shifting common to harm the bearish bias.
Sellers are in management.