FX.co ★ New lower lows for EURJPY

Following our last analysis, EURJPY today is making new lower lows confirming the end of the upward move from October 2020 and also confirming the channel break out and rejection of the back test. As we warned traders, price action showed signs of trend reversal and vulnerability to the downside. Our first target of 129.25 is getting closer.

Blue lines -Fibonacci retracements

Red horizontal lines - Targets

EURJPY is now in a short-term bearish trend as price has started making lower lows and lower highs. Our first target is the 38% Fibonacci retracement level at 129.25. I expect EURJPY to make a corrective pull back of the entire upward move from October 2020. This means that I expect a pull back most probably towards the 61.8% Fibonacci retracement. We remain bearish EURJPY as long as price is below 132.25.