The price has entered a major resistance zone and was resisted. It then formed a butterfly and started falling from the resistance zone.
The price made its first wave of depreciation and broke below its previous swing low, signaling for further depreciation, followed by a retracement channel where the price is now resisted at FR88.6% within the channel.
The yen is most likely to strengthen amid uncertainties after U.S. election which will spread across the global economy. The euro also seems to be weakening on if you take a look at EURUSD and EURGBP where both have depreciated significantly with no sign of exhaustion. It is therefore that EURJPY which is now seen at a major resistance zone and with all the signs pointing towards a major reversal, it is most likely to fall significantly.
Short with full risk as execution is within market hours and structures are perfect with a continuation of a butterfly supporting a fall.
Stop loss was set 30 pips above FR88.6% based on the retracement channel.
First TP is seen at FR61.8% where the 2nd wave of depreciation will be completed.
Second TP is seen at the swing low of the retracement and final TP is seen at FR161.8% of the butterfly which lies within a key support zone.