EUR/JPY Technical Analysis & Bearish Opportunity August 29, 2011

We have obvious downtrend of lower lows and lower highs.

There's an opportunity to go short at around 113.00 which is :-

1. Fibonacci cluster 38.2% , 50% and 61.8% of different swings.

2. Downtrend line coming at this level.

3. Lower limit of previous transverse channel.

4. Previous highs.

Entry around 113.25 - 113.60 with reversal price action on 4H timeframe (Failure of daily candlestick to close above the downtrend line).

It's important to take care that the pair is now forming higher lows & highs which may be turning into uptrend ( So reduce lot size ).

SL should be daily closure above 114.00.