Previous downtrend offers more shorting opportunities by generating some Spinning top, long legged and gravestone doji patterns.

These bearish candles form such as spinning top, long legged and Gravestone dojis at 133.880, 133.863 and at 132.937 respectively lingering below downward trend line.

The prices are forming a sloping channel in it is now struggling to break resistance at 133.096 levels.

Most importantly, massive volume build ups on every price decline confirms downtrend (you can see grey shaded areas on monthly charts).

As a result, both weekly and monthly prices have slipped below 10DMA, hence it could be used as downtrend would drag further. Currently, attempting towards resistance at 133.096 levels.

EUR/JPY is steaming up with heaps of bearish indications by leading oscillators in addition.

Leading oscillating indicators are moving in sync with prevailing price declines (see monthly charts for RSI is directly proportionate with price line), this convergence can be attributed as bearish continuation.

Currently, RSI (14) trending near 53.3117 levels (while articulating) with downward convergence to the dipping prices.

There is a clear sign of selling sentiments as a result of overbought pressures, it alarms bears trying to take over the declining rallies as the slow stochastic noises with %D line cross over above 80 levels on daily (current %D line flashes at 66.0303).

Most probable scenario: More downside potential towards 1st target - 132.500, on break below those levels can drag towards 129.50 and even up to 128.05 levels in medium term.

Adverse scenario: Alternatively, the pair has failed to hold onto resistance ahead of Draghi's speech today with no much expectations, if it manages to snatch any good hints from this some abrupt rallies can be possible but again dramatic jumps above 133.420.

Hedging recommendation: Contemplating certain bearish swings or any abrupt brief upswings, we recommend buying calendar spread that takes care of certain yields regardless of swings.

So, short 1 lot of 2D ATM put with positive theta values, simultaneously add 2 lots of long on 2W ITM -0.65 delta puts after short side expires worthless.