Moves below a trend line tilting the bias a little lower today
The EURJPY has been rebounding after the flash crash last week. The move higher has been tracking above a trend line, until today that is. Today, the price stalled just ahead of the 200 hour MA and then moved modestly below the trend line. The price sits near the midpoint between the 200 hour MA above and the 100 hour MA below.
For the GBPJPY, the run higher has been a bit stronger. For it, the price today extended above its 200 hour MA (green line) and failed. The price moved back below the 200 hour MA and like the EURJPY, is back between the 200 hour MA above at 138.586 and the 100 hour MA below at 137.27
For both the trading bias is the same. Bullish runs higher either stalled or failed on the break. The 200 hour MA is now a topside resistance level for both pairs.
On the downside, the target comes in at the 100 hour MA.
Breaks above or below the MAs (one way or the other) will lead to more momentum in the direction of the break. Right now, “the market” is saying the run higher is over.