EUR/JPY seems to be stuck between the 126.40 and 125.40 areas, while ranging within a 100 pip wide channel. At the same time, the price found the resistance at the 261.8% Fibonacci retracement trendline of the descending channel.
The price rejected a downward trendline quite precisely today, and it should be a starting point where bears will be taking over. The Fibonacci applied to the first corrective wave after the support breakout suggests that the nearest target is the 161.8% retracement level - S2 (124.25).
Consider selling EUR/JPY while the price is near 126.00, targeting S2 (124.25). The stop loss should be just above R1 (126.45)
Support: 125.10, 124.25
Resistance: 126.45
