The EUR/JPY pair has been sliding downwards since the 4th of March 2016, with the bears leading the price form as high as 125.57 to as low as 123.30.
On Tuesday, the pair broke below the bottom of the hammer formed on Monday, reaching 123.85, which is a signal that the market might continue going lower. Today, the pair fell from 124.04 down to 123.30 at the time of writing. In the event that the sellers keep pressing lower, thus forcing the pair to break below 123.30, the price could go down to 123.04 and 122.05 respectively.
On the flip side, in the scenario where the price attempts a bounce to the upside and manages to break above the bottom of the previously formed hammer at 124.25, the pair could escalate up to 124.74 and 125.57 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.