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Technical Analysis – EURJPY strongly bearish below cloud

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EURJPYDailymar10EURJPY has almost retraced the entire upleg from 130.13 (Jan 26) to 136.68 (Feb 11) and is pivoting the 78.6% Fibonacci level of this move at 131.53.

The bias is strongly bearish as the tenkan-sen has crossed back below the kijun-sen and both lines are falling. The market is below the daily Ichimoku cloud and this is also bearish.  RSI gives bearish signals below 50.

A break below the 130.13 low will confirm the overall bearish trend that has been in place since the December 2014 peak of 149.76.  This will open the path towards the next important low at 126.13, which is the 161.8% Fibonacci level. Friday’s large bearish candlestick also supports the downside bias.

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