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EUR/JPY - 4H Channel Breaks Down; Daily Channel Still Intact

EUR/JPY saw a bearish swing last week. It found support above 140.40 and respected a rising channel support.

(EUR/JPY 4H Chart)

As we got into the Friday, 3/21, session, EUR/JPY broke down the channel support. However, as you can see in the 4H chart, the break immediately found support at last week's low. This reflects a market in consolidation, but there is a slight near-term bearish bias from last week's price action.

If price falls below a support area in 140.30-140.40, it opens up further decline for next week. In this scenario, we have to monitor the daily chart, and the rising channel support in that chart. 

(EUR/JPY Daily Chart)

A break below the channel support in the daily chart will be needed to really introduce a bearish outlook, or at least reflect a period of consolidation after a year long rally in a rising channel.