EURJPY is very bearish as the pair continues to fall within a downward sloping channel that began from the June 2015 high of 141.04.
The pair is trading below the daily Ichimoku cloud and below the 200-day moving average. The tenkan-sen and kijun-sen lines are negatively aligned and pointing downwards, giving a bearish signal.
After breaching the key 130.00 level prices have scope to fall towards the 126.08 low from April 2015.
RSI is in bearish territory below 50 but is approaching oversold levels at 30 which could lead to some consolidation in the near term. Prices have been pivoting around the 128.00 level since the start of this year, trading sideways in a range between 127.30 and 129.00.
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