Morgan Stanley made some technical analysis for EUR/JPY using 10-Year EUR/JPY Chart, 2-Year Chart and 90-Day chart, and they made a conclusion about bearish for this pair with some important levels to be mantioned.
10-Year Chart:
"We believe EURJPY traded a major top at the 149.78 level at the end of
last year, completing a major b wave rally. This implies that a major C
wave decline is now developing. Still within the early stages of this C
wave decline, EURJPY is starting to develop a series of impulsive bearish structures."
2-Year Chart:
"Indeed, the substructure from the 149.78 peak has completed the 1st wave lower, followed by a second wave correction. EURJPY is now entering a 3rd wave decline, we believe, of the anticipated 5-wave structured C wave down. This is usually the sharpest part of the structure and often provides attractive risk/reward for positioning."
90-Day Chart:
"The recent up trendline support has been broken, triggering a fresh bearish signal. We now expect a decline towards the 133.31 July low,
which represents the 1 st wave bottom within the broader 3rd wave
decline."
