The EURJPY on the H4 time frame was in a very strong uptrend that started on 8 March. On 31 March a lower top was recorded at 136.834 when bears found the market attractive at that levels. From then on supply started overcaming demand. After the top at 136.834 the price broke through the 15 and 34 Simple Moving Averages (SMA) and the Momentum Oscillator changed course to the down side, both confirming a likely bearish shift in market energy.
A possible critical support level formed when a lower bottom was recorded at 134.505 later in the same session on 31 March. Bulls then started joining the market and the price went higher until reaching a resistance level on 1 April at 135.866 when hungry bears took over.
On 5 April the bears managed to break through the critical support level at 134.505 and three possible price targets were projected from there. Attaching the Fibonacci tool to the lower bottom at 134.505, and dragging it to the lower top at 135.866, the following targets were calculated. The first target was estimated at 133.664 (161.8%). The second price target was calculated at 132.303 (261.8%) and the third and final target may be expected at 130.101 (423.6%).
If the resistance level at 135.866 is broken, the above scenario is negated and risk should be managed actively and effectively. As long as the market partakers maintain a negative sentiment, the outlook for EURJPY on the H4 time frame will remain bearish.