Fundamentals: Overall stock and currencies market are lower today as a result of growing concerns over Trump effecting US growth (enough said there!)
Translation: USD is down, risk is also off and yen and gold are going higher...will post my views on gold separately.
EURJPY: The pair has fallen sharply and broken every major level of support. It also has , as I type, broken a key area of 124.10 and is ready to test the 200 MA. It has not gone below this level since April 2017. What am I going to do?
1) I am not going to enter a trade here, buy or sell. I will wait to see how price interacts as this level. If the 200 MA holds and price closes back above the 124.10 at the end of the day, my overall position on the pair to buy dips remain.
2) Conversely, If it breaks below the 200 MA, I will also wait for a retest of the 200 . If price rejects the 200 again, an continues sustained moves below, of course bears would have conquered the bulls! As you can see on my chart the bears have a lot of room to trample.