Technical outlook and chart setups:
The EUR/JPY pair is trading around 138.14 now after reversing from 138.85 yesterday. The pair rose through the level of 137.00 (taking stops out), and reached 138.50 and above as expected. The pair seems to have completed 5 waves from 126.00 levels and a meaningful correction can be expected lower, in 3 waves. It is hence recommended to initiate short positions now with risk above 139.00. Immediate support is seen at the level of 135.00 followed by 133.00, 131.50, and lower while resistance is seen at 139.00 and higher respectively.
Initiate short positions now, stop is at 139.30, a target is open.