EURJPY provided us with a bearish signal when price broke out of the consolidation range and below 128.84. Our readers were warned about this bearish scenario in a previous analysis when price was still inside the consolidation area around the 38% Fibonacci retracement.
Red lines -Fibonacci extension targets
Green rectangle - consolidation area broken downwards
Blue lines -Fibonacci retracement levels
EURJPY is still in a bearish trend. Price is approaching our next target the 50% Fibonacci retracement. The RSI in the Daily chart is showing some bullish divergence signals, but this is just a warning for bears to be cautious. This is not a reversal signal. So far there is no sign of a coming upward reversal in trend. Bears remain in full control of the trend. We continue to expect to see price reach the 50% retracement.
