EURJPY corrects higher into resistance. Can the sellers keep control and push lower?

<p>The EURJPY traded lower for two trading days and today there was a corrective move higher. The move higher took the pair into a swing area between 157.902 and 158.091. The high price reached 158.038 and has found willing sellers.</p><p>Also near that swing area is in the 100 bar moving average on the 4-hour chart 157.888.</p><p>With the price below those levels, traders may look to lean against them as a risk-defining level. That is, as long as the price remains below the swing area, the sellers remain in control. </p><p>On the downside, the next major target would come against the 200 bar moving average of the 4-hour chart near 156.797. Below that is a 38.2% retracement of the move up from the end of July low to the high price reached on Monday. That retracement comes in at 156.395.</p><p>So stay below the 100 bar moving average at 157.888, or more conservatively below the top of the swing area at 158.091, and look for a rotation back to the downside.</p>

This article was written by Greg Michalowski at www.forexlive.com.