After the break of the Ascending Channel and the Ascending Trendline, EUR/JPY has been on a downtrend, being at the moment sitting on a really strong psychological level, the Support Zone at 125.00-125.15. Since it'ts impossible to predict the market, here are two possible scenarios for this pair:
Short:
-For this downtrend to continue, price will most likely consolidate before breaking to lower lows;
-If this consolidation happens, wait for a clear break of the Support Zone and look for a Long entry on retest;
-Possible targets are 124.00 - 122.50;
Long:
-RSI is super oversold;
-If price consolidates and makes an impulsive move to the upside, a bullish move may be on the way, so look for an impulsive bullish candle or rejection of this support before taking any long position.
Use stop-losses, use a good risk management and remember this is not financial advice.
Short:
-For this downtrend to continue, price will most likely consolidate before breaking to lower lows;
-If this consolidation happens, wait for a clear break of the Support Zone and look for a Long entry on retest;
-Possible targets are 124.00 - 122.50;
Long:
-RSI is super oversold;
-If price consolidates and makes an impulsive move to the upside, a bullish move may be on the way, so look for an impulsive bullish candle or rejection of this support before taking any long position.
Use stop-losses, use a good risk management and remember this is not financial advice.