We can see that after the bullish breakout of the trend, we start to see BEARISH retracement taking place. Taking that to consideration, lets keep a BEARISH bias before we look into the technical analysis part of EURJPY. Interestingly, fibonacci retracement shows a nice pattern with price level retesting 23.6 fib level and 38.2 fib level as it falls. Definitely, by drawing a nice trend line we can also yet to see any form of breakout of this BEARISH trend and I expect a continuation in BEARISH movement breaking 50.0 fib level and potentially retesting it. I believe we will see a lower head forming as it heads downward to potentially 61.8 fib level. At the level, there is also a rather strong support level @118.50. Between 61.8 level and the support level forms my strong support area (Red area), if we see a breakout definitely 78.6 is possible. As of now, I will look into a short position to around 61.8 fib level where it could also potentially meet the lower band.
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