According to Light, the yen showed strength following the Bank of Japan's resistance to more aggressive easing.

Looking at EURJPYs hourly candle chart, Light says prices have started to trend lower and short term momentum is firmly bearish. He believes the market is consolidating within an ascending retracement channel and has just hit the 38.2% Fibonacci retracement level of Friday’s sell-off.

A break below the retracement channel is likely to trigger a new leg lower, Light says. He is looking to sell EURJPY below the channel at 131.50 with a stop above the channel at 132.35. Profit targets come in at around two times risk at 129.80.