Breakdown Play on the EURJPY

The EURJPY is currently trading within the boundaries of a major range (spanning between 130.600 and 129.800). If the price manages to break down below the lower boundary of the range, this would open up the possibility for another breakdown towards 128.400 (previous swing low).

Such a breakdown would be confirmed if the price manages to penetrate below the 100-day MA (in blue) first and then below the 200-day MA (in red). Notice that the latter is currently converging with the lower boundary of the range.