EURJPY failed to sustain the break above the key 124 yen level. The correction from 121.47 (which was the lowest level since March 2013) was brief and prices reversed back down into the 122 handle. RSI is in bearish territory below 50, suggesting further downside risk. MACD also remains in bearish territory.
Apart from resistance at 124.00, the market is being capped by the 50-day moving average. As long as prices remain below this, then downward pressure will likely persist, and prices will continue to fall in the descending channel.
The market is at a critical point now, as it is testing the 50% Fibonacci of the upleg from 94.09 to 149.76 (July 2012 to December 2014 rise). A move below the 50% Fibonacci would start to erase the long term uptrend and there would be a shift in the bias with the 61.8% Fibonacci being the next target at 115.45.
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