In our previous technical comment on the EURJPY (published on May 18), we have studied the potential direction based on the harmonic probability of drawing 5-0 pattern.
The EURHPY pair has adopted favorable reaction to the harmonic scenario, moving about 300 pips to the downside.
Our main technical objective for the harmonic pattern resides on the 131.50 regions where it may complete the last leg of the structure-CD leg- as seen on the provided chart below.
The classical studies affirm the bearish outlook with the probability of drawing the right shoulder of inverse head and shoulders pattern.
Technical indicators are presently negative since (Know Sure Thing) presents negative crossover, while Vortex turns gradually into bearish, reinforcing our constructive technical idea.
Back to the harmonic formation, which sometimes may send the price towards 61.8% Fibonacci of BC leg.
In brief, eyes should be on 131.50, while 130.25 could also act as PRZ-potential reversal zones- and we remain bearish until the pair approves the possibility of moving higher once again.