Since the beginning of the year the currency lost over 6.0% and last week alone fell almost 2.0% in addition is in a distribution phase since early April.
Last week the EURJPY plunged with a wide range and closed near the low of the week, also the currency pair managed to close below the previous week low, which suggests a strong bearish momentum.
The currency pair was pushed further below 50-week moving average that should provide a strong dynamic resistance.
The stochastic is showing an extreme oversold market although is still displaying a strong bearish momentum.
Expecting an upward move to a Fibonacci retracement at 118.13 on a bounce from other Fibonacci retracement at 114.786 (scenario 1) although a break below Fibonacci retracement at 114.786 could drag down the currency pair to the weekly support at 111.425 (scenario 2).