Technical outlook and chart setups:
The EUR/JPY pair has dropped lower, hitting 121.95 levels today. The pair seems to have made interim resistance at 126.40 levels yesterday before reversing sharply. Any rallies from current levels should only be considered to be corrective in nature (3 waves), and should remain well capped below 125.00 levels going forward. It is recommended to remain long (aggressive strategy, countertrend), with a risk below 121.50 levels. Immediate support is seen at 121.70 levels, while resistance is at 124.70 levels respectively. It looks like the pair might have resumed its downtrend, and the 126.70 level is a major hurdle for bulls to remain for now.
Trading recommendations:
Remain long, stop at 121.50, target 124.70.
Good luck!
