Technical outlook and chart setups:
The EUR/JPY pair is seen to be trading at the level of 127.00 this moment, looking for an opportunity to resume its downtrend. The structure reveals that the recent rally from 122.00 through 127.00 has unfolded in 3 waves, which is corrective in nature. Furthermore, the pair is facing Fibonacci 50% resistance of a drop between 132.00 and 122.00. It is hence recommended to remain short now with risk above 128.00. Immediate resistance is seen at 128.00, while support is at 126.00. Bears are expected to take control back from here until prices stay broadly below 128.00, looking lower from here.
Remain short for now with stop above 128.00, a target is open.