The EURJPY cross is breaking the Lows of the Triangular Formation and is initiating a bearish continuation whos first mid-term target should be 118 yens and 115 yens as a second target.
On the daily chart, we can see that the price is moving below its 200-day SMA, and, after a series of oscillations in a triangular formation, EURJPY price broke below it four days ago. Today we see that it is forming a strong bearish candle, so far.
The MACD is bearish and also the CCI points to a downward trend. Stochastics is oversold, but not a critical trending indicator.
A potential strategy to go short is waiting for a retracement to the previous support and go short when the price bounces off of it.
Please note that the CCI is close to 300. That means the price is overextended and a retracement is highly likely. By watching carefully how the price behaves during that retracement we can tune our potential short entry.
Finally, we see on the daily chart that the price action means an underlying downward trend. This is also confirmed by the price moving below its 200-day simple moving average. Therefore, this setup increases the probability of success in short positions.