Was not too happy with the first couple hours of the market open. Expecting this pair to remain bearish was the most reasonable especially considering how it has performed last week. However, keep in mind that it ended the week off with an accelerated sell-off.
Based on the trend-line, the price should have followed it. After a major deviation away from it, it is not uncommon for the price to retrace and perhaps go for a further sell-off. Normally I am not a fan of longing the Yen, but it does seem reasonable in this case.
Looking at the daily time frame, the EURJPY pair appears to be in more of a range than a trend. The selling pressure can be viewed as the close-out of buyers' long positions. Of course, fundamentals are still the driving factor. It's really just a matter of which is more bearish - the Euro or Yen.
I don't recommend going short anymore as the reward to risk ratio has diminished significantly. This forecast is more to predict the support zone and the reversal point for where traders should look to go long.
