EURJPY after bouncing towards 132.50 is now moving lower after getting rejected. In our analysis from June 20th we warned bulls that a trend reversal was coming. Price was expected to bounce towards 132 for a back test and get rejected. Now we are after the rejection phase and we continue to see the first Fibonacci retracement level as our key target.
Blue lines -Fibonacci retracement levels
EURJPY has broken out of an important bullish channel. This is not the time to be bullish EURJPY. Price is expected to at least make a corrective pull back relative to the up trend that started on October 2020 and ended on June 2021. Price first target is at the 38% Fibonacci retracement. Breaking below it will open the way for a deeper pullback towards the 50% retracement. 129.30 is our first target, 128.55 our second and 126.40 the third. We are bearish EURJPY as long as price is below 132.60.
