EURJPY - watching the short side - 130 the key level

The EURJPY is back on the watchlist as the only EUR related pair. Zoom out to the daily and you see the downward sloping price channel. Last week it found resistance at the upper side of the channel at 132.

We are watching 130 closely. A break of 130 could lead to additional bearishness and kick off the next bearish wave. Ideally we'd like to see a bullish wave first that would (1) trap premature buyers and (2) print a momentum divergence. We'll watch both scenarios closely - along with the outlined USDJPY setup.