The EURJPY is moving higher today as traders breathe a little easier as some tension is released from the Russia/Ukraine situation. That has helped the EUR recover. The USD is also moving higher as focus may be more on tighter Fed policy.
Looking at the hourly chart, the sharp move down on Friday on the fear of an imminent Russian invasion into Ukraine sent the price below the 100 hour moving average, the 200 hour moving average, and down to test the 200 day moving average at 130.475.
During trading yesterday, a lower low was reached, and in the process, the pair tested its 100 day moving average at 130.16. That moving average gave traders cause for pause, and the price started to chop higher. The price closed above its 200 day moving average yesterday at 130.477.
In trading today, the Asian session saw support buyers against that 200 day moving average at 130.475, before buyers took over and pushed the price higher on relief on the border. In the New York session, a new high was made near 131.453. That has the pair within shouting distance of both the 100 and 200 hour moving averages near 131.59.
A move back above those moving averages would increase the bullish bias. However, sellers may also look to lean as risk can be defined and limited against the levels (with stops on a break above).
