A strong medium-term selling opportunity for EUR/JPY is approaching.

The EUR/JPY pair continues to move within a strong downtrend, a result of previous distribution activity.

The pair has currently reached significant demand zones, which could trigger an upward corrective move before the decline resumes.

Expected Targets

In the event of an upward move, the pair is expected to test the supply zones near the 181 level (as indicated on the chart). From there, a reversal to the downside is anticipated, targeting the 180 and 179 levels, respectively.

However, this bearish outlook—and the associated selling opportunity—would be invalidated if the price breaks above the supply zones and closes higher with a bullish daily candle.