Technicals: EURJPY in a downtrend since the beginning of 2019
The technicals are generally well defined here, with a large channel inside of which the downtrend has traded for the whole year of 2019.
Switching to the 4-hour chart, we can see more details of the price action. There is a smaller bearish 14-day channel within the larger (more significant)...
We can short EURJPY for the following reasons.
The Primary Wave 2 is completed thus we are potentially seeing wave 3. Wave 3 cannot go higher than wave 2.
The price is also approaching intermediate wave 2 where it should terminate and start wave 3. Again wave 2 cannot go over the area of starting of wave 1.
It is a hat-rick because minor wave 2 cannot cross...