Forex technical analysis: EURJPY corrects to MA resistance

100 hour MA at 130.335

The EURJPY has just extended to a corrective resistance area at the session's high. The 130.39 is the swing high from August 15th. The 100 hour MA comes in at 130.325. The high price just reached 130.389.

Sellers are leaning against the corrective resistance area.

Looking at the daily chart below, the pair last week moved to new highs going back to Jan/Feb 2016. That break at the end of the month failed to gather momentum on three separate days. That is a big failure. Is the high in place. If so, selling a retracement is the way to go.

So if the high is in place, this would be an area to expect sellers. At least risk can be defined against the 130.39 level and it is a play on the failure above. If the price is to go lower look for a break of the 130.25 (38.2% retracement on the hourly). That is the minimum. Then look for a break of the lows from Monday at 130.10 area and the natural 130.00 level. That type of move would start to build more of the bearish case for this pair.

What don't shorts want to see?

A move above the 130.39 level. That would muddy the bearish water a bit.