Forex: EUR/JPY selling runs into 100.45/50 support
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EUR/JPY
FXstreet.com (Barcelona) - EURJPY is drifting lower at the Tokyo open, hit by a severe round of selling orders which just sent the sport rate straight into technical support area at 101.45, the Sept 7 high, and a new 6-day low.
Yesterday's high at 101.85 gave up at the 200-DMA, with a sharp sell-off seen on the 'EZ-US session overlap', when liquidity is the highest. Ascending trendline coming from July 25 is now being tested.
If price fails to hold at the crucial support is sitting at, further downside targeting the 100.00 psychological number first, followed by Sept 27 low at 99.70, is expected. The lower end of the bollinger band nearby reinforce sellers taking profit if level is reached, with scalpers then taking a chance to make some quick pips.
On the flip side, bulls may present challenge to current short term bearish momentum only if regaining yesterday's high, although more works will be needed above 101.00, where heavy congestion is anticipated as per Oct 2,3 traffic.
Yesterday's high at 101.85 gave up at the 200-DMA, with a sharp sell-off seen on the 'EZ-US session overlap', when liquidity is the highest. Ascending trendline coming from July 25 is now being tested.
If price fails to hold at the crucial support is sitting at, further downside targeting the 100.00 psychological number first, followed by Sept 27 low at 99.70, is expected. The lower end of the bollinger band nearby reinforce sellers taking profit if level is reached, with scalpers then taking a chance to make some quick pips.
On the flip side, bulls may present challenge to current short term bearish momentum only if regaining yesterday's high, although more works will be needed above 101.00, where heavy congestion is anticipated as per Oct 2,3 traffic.
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