EUR/JPY Price Analysis: Probes Fibonacci support

• EUR/JPY's daily chart shows bearish sentiment is quite strong. 
• The key support at 122.27 could be breached.

EUR/JPY has erased early gains to trade near 122.27, the 38.2% Fibonacci retracement level of the rally from 114.40 to 127.07. 

The support could be breached as the long upper shadows attached to the previous two daily candles suggest a strong sell-on-the-rise mentality. A similar view is being echoed by the rejection at 122.73 early today and the subsequent drop to 122.27.

Further, the 14-day relative strength index is signaling a bearish bias with a below-50 print. 

Acceptance below 122.27 would open expose the Oct. 30 low of 121.62. Alternatively, a close above Wednesday's high of 123.18 would confirm a bullish reversal. 

Daily chart

Trend: Bearish

Technical levels