EURJPY has taken a sharp turn to the downside, breaking below a key support area and tumbling to the swing low around 180.82 to confirm that sellers have gotten the upper hand.

The pair is currently trading around 182.39 as it stages a corrective bounce, putting the Fibonacci retracement levels squarely in focus as potential areas where sellers could look to re-enter the downtrend.

The Fibonacci retracement tool drawn from the swing high to the swing low shows the key resistance levels to watch on the current rebound. The 38.2% Fib sits at 182.92, which lines up closely with a prior support zone that has now flipped to resistance, which is a classic area of interest for sellers waiting to reload.

A stronger bounce could reach the 50% Fib at 183.56, followed by the 61.8% level at 184.21. If any of these levels cap the recovery, EURJPY could resume the slide back toward the swing low at 180.82 or lower.

On the moving average front, the 100 SMA has crossed below the 200 SMA to confirm that the path of least resistance is to the downside, and both indicators are sloping lower above current price action. This bearish crossover reinforces the idea that rallies toward the moving averages could attract fresh selling pressure rather than spark a sustained recovery.

Stochastic has bounced out of the oversold region and is heading higher, suggesting that the corrective bounce may have some legs. However, the oscillator still has room to climb before reaching the overbought zone, which could allow price to test the higher Fibonacci levels before sellers regain control.

RSI is similarly on the rise after pushing into oversold territory, though it remains below the midpoint, keeping the broader bearish bias intact.

EURJPY is likely to take cues from ECB and BOJ rhetoric, as diverging policy expectations between the two central banks could either reinforce the downside pressure or trigger a more meaningful recovery if the euro catches a bid.