EUR/JPY technical analysis: Bears in control, bulls capped at 23.6% Fibo

• Bears are lining up for a run to a 119.91 longer-term range 78.6% Fibonacci retracement.
• Bulls rejected by the 23.6% Fibo of the 10th July highs and recent swing lows.

EUR/JPY has managed to price through the hourly 50 moving average, firmly rejected by the 23.6% Fibo of the 10th July highs and recent swing lows. Indeed, EUR/JPY maintains a negative bias while we are below the 55-day ma and the 3-month downtrend at 122.21/28 and is a fade on rallies within the descending downtrend and channel.

Bears are lining up for a run to a 119.91 longer-term range 78.6% Fibonacci retracement ahead of 117.85 as the January spike low. A break out of the channel and above the 200-hour moving average that has a confluence with the 50% Fibo of same hourly short term rage opens a run to 122 handle and the 78.6% before the swing high top at 122.30. Above there we have the May 21, June and current July highs.