EURJPY is trading at 131.30 area after getting rejected as expected around 132. Price has bounced back up and tested the broken bullish channel from below. The rejection is an indication that the next leg down is starting. For this to be confirmed, price will need to break below recent lows.
Green lines - bullish channel (broken)
Blue lines - Fibonacci retracements
EURJPY recent low at 130.50 is the most important short-term support level. A break below this level will open the way for a bigger pull back towards the 38% Fibonacci retracement and the 129.20 price level. As long as price is below 132.30 we remain bearish, because after the channel break down, price back tested and rejected at the resistance. All this are signs of weakness and the start of a corrective pull back of the last upward move from October 2020.
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