EUR/JPY is approaching the major resistance at 125.55 (Fibonacci extension, Elliott wave theory, swing high resistance, bearish divergence) and we expect the price to reverse from that level to at least 124.72 support (Fibonacci retracement, horizontal swing low support).
Stochastic (34,5,3) is seeing the major resistance below the 91% level from where we expect a drop. We are also seeing the bearish divergence vs price signalling that a reversal is impending.
Correlation analysis: we're expect JPY to be broadly stronger with AUD/JPY and USD/JPY facing a drop too.
Sell below 125.55. Set stop loss at 126.09 and take profit at 124.72.
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