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EUR/JPY to Start Week Looking at a Bearish Breakout

It looks like the bearish correction that started in June has not ended. The daily chart shows the April-May rally from 126.09 to 141.05 being corrected since June. Now after the first swing, I will call it wave A, a wave up (B) brought price from 133.09 to 139. Then, after a small double top, it looks like price has turned into another wave down (C). This wave has been persistently bearish so far and has just broken a rising trendline from July. 

EUR/JPY Daily Chart 8/30


(click to enlarge)

The daily chart shows the EUR/JPY has shifted from a bullish to neutral market, and perhaps bearish in the short-term. The current bearish breakout opens up the 133.09 area, with risk of going lower in an ABC correction scenario. If price fails to break below 135 next week and climbs back above 137, we would have to revise that ABC outlook and wait for more price action to assess the technical condition. One thing we can say is that if price does climb back above 137.00, the bulls might be in charge and the 139, as well as the 141.05 high would be back in play.