The bears have taken control of the EUR/JPY, which is testing the previous daily structure.
Bullish commitments could lead to a daily bearish impulsive corrective to the upside.
As bears take complete control below the preceding daily lows of 131.20, the cross is testing the downside in a continuation of the prior daily bearish impulse.
The bulls, on the other hand, will be searching for a correction, and there is a chance of a deep correction to test the prior lows and the 38.2 percent Fibonacci retracement, as seen below.
The price is in the hands of the bears on the daily chart, although it is meeting the previous closing and opening lows from late-mid June.
There are positive prospects, at least to the intersection of the neckline and the 38.2 percent Fibonacci retracement, based on the M-formation, which has a high completion rate in price retesting the neckline.
This level is close to 131.30.
In order to reach the daily target, the bulls will have to break through several layers of hourly resistance in the coming sessions./n
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