EURJPY extended its decline to a new low since falling from the high of 141.04 (June 2015). The underlying bearish market structure remains as prices have fallen below the 200-day moving average and below the Ichimoku cloud. The cross of the tenkan-sen line below the kijun-sen line has increased the bearish bias. RSI is increasingly negative.
The market has now retraced over 50% of the rise from 126.08 to 141.04 and is now testing the 61.8% Fibonacci retracement level of 131.78, with scope for a further decline to 129.26 (76.4% Fibonacci). To the upside, the 50% Fibonacci is now resistance at 133.55. A move above this would bring the market back to neutral, back in a range. Alternatively, a fall below the 61.8% Fibonacci (131.78) would strengthen the bearish bias.