The EUR/JPY yesterday was able to breach the 50% correctional level for the upside channel where a confirmation of this breach will take the pair to its next target at 158.64 which is the 61.8% correction. On the weekly charts, we see the pair being oversold giving it a possibility to slightly rebound yet technical oscillators support the downside direction. A good demand point for the pair would be 159.87.

The pair is testing the 61.8% Fibonacci correction for the ascending channel where breaching this level to the downside will take the GBP/JPY pair to the next best support on the trend line at 200.78 which offers a good buying point for the pair. Overall, direction indicators are pointing to the downside yet momentum indicators show that the pair is being oversold on the daily and weekly charts which could provide the GBP/JPY pair with slight momentum to close above 201.46 which is the 61.8% correction mentioned earlier

We see high volumes of trading on the pair yet the bullish momentum isn't enough to allow the pair to escape the sideways trend. A successful breakout of the 0.8030s level will initiate a strong upside wave while falling to as far as 0.7820s-0.7830s will allow the pair to extend the downside movements. Good demand for the pair is at 0.7946.