• EUR/JPY bears are moving in on critical support.
• A breakout could be on the cards in the coming sessions. 

EUR/JPY bulls are correcting on the ower time frame, but the bears are moving on a critical longer-term support level. The price from a daily perspective has completed a restest of the W-formation's neckline as illustrated below:

EUR/JPY daily chart

This would be expected to act as support on initial tests where the 50% and 61.8% ratios align with the structure above 128.80. A break of there, however, would open the risk of a downside continuation to test back into the 127.80s

EUR/JPY H1 charts

From a bearish perspective, the hourly market structure is as follows:

The bullish outlook, on the other hand, requires a break of the 129.30s.