A bearish channel has formed on the EUR/JPY Daily Chart.  The bearish Gartley pattern may help continue the recent move down.  This pattern has nice convergence and has been slowly climbing up in the CD leg (which is a good thing).  The pattern may not complete at the top of the bearish channel, but it still would complete within a downtrend within the channel.

We are looking the sell the EUR/JPY if it rises to 132.21 (Point D).  Point D is located at the convergence of the following points:

 

We will now go over what to watch for assuming the pair continues rising towards our entry at 132.21.  First, we need to watch how quickly CD completes.  We are looking for the CD leg to rise slowly and enter the trade near where we have drawn the hypothetical entry.  If there are long bars near the completion of the CD leg, we will not take the trade.  Also, if the pair comes within 15 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair falls below 129.45 before hitting our entry.

To recap, we will look to sell the EUR/JPY at 132.21 with our stop placed at 132.75.  Our initial profit targets are 131.41 (38.2% of CD) and 130.72 (61.8% of CD).