A downward correction may continue

On the 4-hour chart, the price reached 137.38 where the correction level and 38.2% arc for the short-term trend cross each other. This level is seen as the key one as both the short-term and medium-term 23.6% corrections stand here. The breakdown of 137.38 would allow the price to fell to 136.94 and 136.49. If the price fails to break down this level, it may resume its growth along 38.2% arc towards 137.94 and 138.83.

On the daily chart, the pair is also going to test 23.6% correction level for the medium-term trend (137.33). If this level is broken through, the price may fell to 135.32, where 38.2% correction and 61.8% arc for the medium-term trend cross each other.

Trading tips

Sell the pair from 137.38 with targets at 136.94 and 136.49 and stop-loss at 137.80.

Alternative scenario

Buy the pair when the level of 137.94 is broken through with the target at 138.83 and stop-loss at 137.50.

EUR/JPY: Fibonacci analysis

EUR/JPY: Fibonacci analysis

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