Technical outlook and chart setups:
The EUR/JPY pair has retraced lower from its high of 125.58, registered on March 04, 2016. The pair is trading around the level of 123.58 now, and looking for an opportunity to produce a bullish bounce soon. Please note that the pair has corrected lower in 3 waves till now and hence a 5-wave rally could unfold going forward. Also note that it is being supported by a convergence of fibonacci ratios (0.618 and 0.786) of rallies between 122.00 (through 125.85) and 123.10 (through 125.85) as depicted here. It is hence recommended to remain long from here with risk below 123.00. Immediate support is seen at the level of 123.00 levels, while resistance is seen at 124.00.
Remain long now with stop at 123.00, a target is open.