EURJPY Technical Analysis for August 26, 2016

Technical outlook and chart setups:
The EURJPY pair is seen to be consolidating at the moment, looks to be in its wave 4 of the 5 wave's decline that resumed from 118.45 levels earlier. It is seen to be trading at 113.50 levels at this moment, looking to continue dropping lower from here. Please note that the pair has reversed lower from 114.00/10 levels as expected which is also fibonacci 0.382 resistance of wave 3. The wave structure remains unchanged for now and indicates that EURJPY has formed major top at 121.90 levels earlier, and has also carved out a lower high at 118.50 levels as seen here. At this moment the pair looks to have terminated wave 4 already, within its 3rd wave drop from 118.50 levels. Bears are expected to remain in control till prices stay below 115.00 levels going forward. It is hence recommended to remain short now with risk above 115.00 levels. Immediate resistance is seen at 115.00 levels, while support is at 110.50 levels respectively.

Trading recommendations:
Remain short now; stop above 115.00, target is open.

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