EURJPY Analysis

In the daily timeframe, we saw a double top formation and the price dropped to the support level(neckline) as forecasted in my previous analysis. The price has bounced off to the first support turned resistance. JPY has strengthened in the past few days indicating that this might be just a slight pullback before the price continues dropping. Considering the double top formation combined with bearish divergence on the daily timeframe, I can only see a drop to 38.2% retracement before getting to the 50% level.

Tomorrow should the ECB maintain a dovish view on the economy, we could see a break below 124.400 which would confirm the bearish bias.