We are currently seeing a change in direction on the EUR/JPY with swing lows being broken to confirm this on the H1, H4 and daily time frame. Price has just broken a key support level (121.188195) and we can now be looking at price coming back to test this level now being resistance, however, we also have the 70.5% I like to use which is a recent swing low also a sweet spot (121.000), which price could be reaching for.
Lastly to confirm this move we have the 200ema above the 50ema confirming to us once again that we are in a bearish environment.
Now waiting to see the RSI indicator indicate to us that we are overbought at the same time we see price come to either the 121.000 sweet spot or 121.188195 level to start looking at going short.
EUR/JPY 1 Hour Chart
EUR/JPY 1 Hour Chart 2