We continue to view the EUR/JPY currency pair as an indicator of stock market investor sentiment. At the moment, we see that the price has "changed its mind" about retesting the upper boundary of the price channel (173.75) and has sharply reversed toward support at the intermediate level of 171.32. Behind it lies the MACD line (170.70), a break below which would open the path toward the target at 169.30.

However, the main target is the 165.70–166.05 range, which coincides with the embedded line of the green price channel. The Marlin oscillator's signal line has turned downward without reaching the zero line. Formally, the downtrend has already begun as of July 28.

On the four-hour chart, the price has reached the MACD line from above. The Marlin oscillator has forcefully moved into negative territory. A drop below the signal level of 171.32 would open the nearest target at 170.70.

Due to the current situation in EUR/JPY, we are increasing caution toward any stock market purchases.