- EUR/JPY is on the verge of a significant correction to the upside.
- Bears are lurking at prior support expected to be resistance.
The hourly chart is shaping up for a potential continuation to the downside. The following illustrates the bearish bias should the price be rejected at the prior lows.
EUR/JPY hourly chart
The price made a lower low in a bearish impulse on the hourly chart which still has room to go until it meets the prior lows looking left.
This is an area of support that would be expected to be tested in the forthcoming sessions.
A 38.2% Fibonacci retracement level meets the prior lows and previous liquidity. If this holds as resistance, then bearish case could start to build again.
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