Since last week there has been short-term negative sentiment in the market after posting a bearish outside week. Ian also notes that EURJPY has broken out of an intraday channel formation to the downside and there is evidence of a 261.8 percent extension level just below JPY 144.31.

Given these bearish signals, Ian is looking to sell EURJPY at JPY 146.40. His two targets for the trade are JPY 145.00 and JPY 144.50. A stop can be placed at JPY 146.80.

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