Technical outlook and chart setups:
The EUR/JPY pair dropped lower and hit the level of 123.50 as it was discussed and expected earlier. The pair seems to complete its drop that began from 132.50. EUR/JPY is trading higher at 123.75 at the moment, looking for a stage for an impressive rally from here. It might be corrective though. Please note that the pair has triggered all targets/extensions (marked in Red), and hence a high probability of a pullback remains at the current levels. It is hence recommended to take full profits on short positions now and wait for a bullish reversal signal to go long. Immediate interim support is seen at 123.50, while resistance is at 124.25. Bulls are expected to regain control.
Book profits on all short positions taken earlier and remain flat.