EUR/JPY: breakdown expected

The EUR/JPY has bounced off the lower line of a major descending channel but soon ran out of momentum and has now corrected back. There is a possibility it may start another leg higher and reach just above the top of the gap at around 95.45. However, a break back down below the previous lows at 94.43, which is at the level of the 74.6% Fibonacci line would act as a strong bearish confirmation and lead to a further run down to support at 94.00.

Written by Forex4you