EURJPY - Short term correction

EURJPY (1H) - short term bearish bias

The January rally has met stiff selling pressures near the major resistance level of 122.50. Yesterday's doji candle was a sign of exhaustion. The euro is likely to pull back in a temporary correction. On the hourly chart, the moving averages and the support level of 122.30 failed under pressure. The bearish MA cross is a confirmation that sentiment has turned downbeat. As the retracement deepens, we would expect the pair to drop towards the 20-day MA near 121.50.

Key support: 121.50
Key resistance: 122.55