EURJPY - Bearish and bounces attractive

With June’s EURJPY rally stalling exactly at 101.65, a 38% recovery to this year’s sell-off (111.45-95.59), this week’s signals have turned to bearish. These are so far being confirmed with Monday’s trading posting an overall loss of 2 Big Figs on the day. A sequence of higher daily lows has been ended which is negative, but intraday sentiment is oversold and bounces are likely. With this in mind the outlook for Tuesday is to stay short, but to allow room to sell a rally at 99.60 with a stop loss at 99.91. The immediate objective is 99.16/21, yesterday’s low, with a move through this point targeting 98.58, last week’s base and then towards 97.50.