FX.co ★ EURJPY vulnerable to a move towards 127.80 under certain conditions.

EURJPY continues to move sideways right above the major Fibonacci retracement at 129.25 area. Short-term trend remains bearish as price continues making lower lows and lower highs after exiting the bullish channel since October 2020.

Red parallel lines - bullish channel (broken)

Red horizontal lines -Fibonacci extension targets

Blue horizontal lines - Fibonacci retracement targets

Green rectangle- short-term consolidation

EURJPY continues to consolidate around the 38% Fibonacci retracement. Breaking below the recent low of 128.84 will open the way for a pull back towards the 50% Fibonacci retracement at 127.85. Resistance is at 130.20 and as long as price is below this level, bears are in control of the short-term trend.