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EUR/JPY Giving us More Bearish Signals

If you are not convinced EUR/JPY is turning bearish, this week's price action should be very persuasive.

(eurjpy 6/10, daily chart)

There were already signs of topping when EUR/JPY traded sideways in 2014. Then in May, with a break below a rising trendline and the 100-, and 50-day moving averages, we got more bearish implications.

However, price held above 138.00, and above the 200-day SMA. Thus EUR/JPY was more or less sideways, and the bearish outlook was still shelved. 

This week, we saw a failure to push above the 140 handle, which was a previous support area. Turning resistance makes EUR/JPY bearish below 140. Also, price is sliding fast and threatening the 200-day SMA again. A break below 138 would clearly break below the moving average, and would also open up the 2014- low at 136.23.

Finally, the daily RSI has tagged 30, then failed to push above 60. before returning below 40. This RSI dynamic reflects building of bearish momentum.