Technical outlook and chart setups:
The EUR/JPY has dropped lower towards 125.00 levels as expected and discussed earlier, before pulling back. The pair is seen to be trading at 125.90 levels but intraday rallies should remain well capped below 127.00 levels going forward. Please note that the earlier rally between 122.00 and 127.20 levels was corrective (3 waves) in nature. Hence the pair is expected to drop lower below 122.00 levels in the sessions to come, provided prices remain below 127.20 levels. It is recommended to remain short, with risk above 127.00 levels for now. Immediate resistance is at 127.20 levels, while support is seen at 125.00 levels respectively.
Trading recommendations:
Remain short for now, stop at 127.50, target below 122.00
Good luck!
