EURJPY
Preference:
After analyzing the price movement on the 2-hour time frame, it appears that the market is showing signs of a possible bearish continuation. The downward trendline has been respected by the price action, indicating that the momentum remains on the bear's side. Furthermore, the most recent rejection has resulted in the formation of a double top, which is a bearish reversal pattern. If the bearish pressure continues, we could see a retest of the previous lows, which could further reinforce the bearish trend.
Alternative Scenario:
If the price of a security drops to retest a previously established level of support that has held up in the past without breaking the previous lows, it could indicate that the market is about to turn around and move in the opposite direction. In other words, a trend reversal is possible.