Bounces off prior swing lows

Looking at the 4- hour chart below, the EURJPY successfully held support at a support area that has been home to some swing levels going back to Mid-April. That area is between 121.65 and 121.735

  • On April 18. The low came in at 121.701.
  • On April 29. The low extended to 121.657
  • On May 6, the lows were broken, but failed. The next bars low stalled at 121.73
  • On June 2, the key area was broken and then it held as resistance on June 3rd

The low today just tested the 121.65 level and held.

Is the low in?. Will this be another swing low for the pair?

Technically, you can see why the traders leaned. Risk could be defined and limited against the area and although it banged on the breaking point, the buyers held the ground and we have seen a modest bounce.

What would give the buyers more confidence now? What would give them more control?

Looking at the 5 minute chart below the blue overlay line is the 100 hour MA. The price dipped below that MA line but stalled at the support on the daily. The price has rebounded above that MA at the 121.75 level and is trying to stay above as I type.

If that level is defended - and holds- and if the price can get back above the 50% of the last leg down today at 121.935 (see chart below(, the buyers will be showing that there could be further upside corrective potential. In addition, the swing low level would have the potential to be another bounce point.