Yesterday I outlined how the EURJPY has been able to remain below key MA levels ( SEE: Forex Technical Analysis: EURJPY below key MA levels).
The price corrected higher in Asian trading but was able to remain below the 100 hour MA (blue line). There were a few hourly bar breaches above the 200 hour MA (green line) but they were rejected. So traders short still remain in control, and risk remains the moving averages.
This a free trade for the shorts. It kind of goes against the sentiment for the JPY as the stock markets are back up and steady and sentiment for the USDJPY is not all that bearish technically, but the technical bias for the pair points lower (with defined risk) as the EURUSD is contributing to the bearishness.
On a break of the low for the day at the 135.50 area, the next support target on the hourly chart comes in at 135.02-12, then the low for the year and the month at the 134.127. My stop is above 136.05 but will continue to monitor the price action.