Since the sell-off reaction to Brexit, EUR/JPY has been in a non-trending, consolidation mode.EUR/JPY 4H Chart 8/16(click to enlarge)Bearish bias:- Price has been consolidating and even cracked 118, but keeps the bearish bias because the high was under the 122 high established around the time Brexit votes were being counted.- Also, note that price is below the 200-, and 100-period simple moving averages (SMAs) in the 4H chart. - Furthermore, since the RSI came close to 30 again in late July and early August, it has held under 60 for the most part. This reflects some bearish momentum. Key resistance/bearish scenario:- As we can see, price is now trading at a falling resistance. - I think if the market is bearish, this trendline should hold. - In this scenario, there is downside risk first to this past week's lows around 112.30. - With the prevailing trend being bearish entering into July, the downside risk to 111 and 110 would not be considered aggressive. - In fact, the bearish bias suggests a possibility of price going down towards the June, post-Brexit low at 109.10.114 resistance/bullish scenario:- Now, if price breaks above the falling resistance, let's not jump to a bullish outlook just yet, establish with the prevailing trend entering into July being bearish. (EUR/JPY has been bearish even before Brexit).- There is a key support/resistance pivot at 114.00.- If price breaks above 114.00, EUR/JPY will be exposed to 118.00. - It should be noted that this bullish scenario in the short to medium term is still within the context of the longer medium-term downtrend.