EURJPY
EURJPY surged with impulsive movement to the upside after breaking above the 78.6. The market retested that area multiple times after the break, establishing this area as valid support. After a few tests of the upward trendline, the bulls ran away. Price action led us to the 165.000 area before consolidating. The break below that range area shows the possible retest of the 38.2 of the Fib and our trendline. If this area holds, we could see a retest of the highs or a break above.
Alternative Scenario:
If the price fails to hold at the 38.2% level, it could indicate a deeper retracement, which means the price may fall further. In such a scenario, the next points of interest for traders are the 50% and 61.8% levels, as they may act as support and prevent the price from falling further.