Technical outlook and chart setups:
The EUR/JPY pair had hit fresh lows at 125.00 levels earlier as expected, before pulling back higher again. The pair is trading at 125.40/43 levels at the moment, looking to continue drifting lower towards 124.50 and 124.00 levels respectively, before producing a meaningful pullback. The structure reveals that EUR/JPY should be completing this down swing around 122.00/123.00 levels approximately. It is hence recommended to remain short for now, with risk at 126.60/70 levels. Immediate interim support is seen at 125.00 levels, while resistance is seen at 127.50 levels respectively. Please note that the pair is testing a channel line resistance for now, and bearish reaction is expected around 125.40/50 levels.
Remain short for now, stop at 126.70, targets are 124.50 and 124.00