The EUR/JPY pair is presently forming the CD leg for our proposed harmonic structure as seen on the provided four-hour chart. It is moving below SMA 50 which is valued at 123.40 zones, adding further negative pressure on it. Coming beneath 121.85 zones will be able to bring panic sell-off actions, supported by the negative sign, appearing on Stochastic. Thereby, possible negative movements might be witnessed over intraday basis.
The trading range for today is among key support at 120.40 and key resistance now at 125.00.
The general trend over short term basis is to the downside, targeting 115.00 as far as areas of 132.50 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair with a breakout below 121.85 targeting 119.80 and stop loss above 123.60 might be appropriate.|