EUR/JPY has moved higher than expected and is likely to test the strong resistance near 126.90. As long as this resistance protects the upside, the long-term correction lower will be intact for a decline closer to 119.90 and even lower to 117.37.
If, however, this resistance gets broken, it will be the first good indication that the long-term correction is over and a new impulsive rally is approaching.
We still prefer one more decline to end this larger correction, but we will stay flexible if the price-action tell us that a bottom is already in place.
We will sell EUR here at 126.79 with stop revers placed at 128.20