Technical summary:
EUR/JPY continues to move lower, but we still need a break below important short-term support at 128.33 to confirm a new test of 126.87 and more importantly new lows near 125.98. In the short term, only a break above 130.41 will call for the expected downside pressure. A break above resistance at 131.41 is going to signal that a premature bottom is found at 126.87 and a new impulsive rally to above 149.55 is developing.
Trading recommendation:
We are short EUR from 129.85 and will keep our stop+reverse at 130.40
