- EUR/JPY is embarking on a downside extension from weekly resistance.
- The bears are engaging below the 10-day SMA.
EUR/JPY has been rising into a key supply area for the best part of 2021 following a series of uninterrupted monthly higher closes.
However, the price is due for a downside correction and the following analysis illustrates that the cross is in the throes of a daily downside continuation.
EUR/JPY weekly chart
The weekly chart is showing resistance.
EUR/JPY daily chart
The price has completed a significant upside correction on the daily chart and it would now be expected to move lower in a downside extension, at least to prior resistance.