Technical outlook and chart setups:
The EUR/JPY pair has reversed lower from 127.00 yesterday. The pair is trading at the level of 126.30 for now after hitting a low of 126.00 yesterday. It looks like a meaningful top is in place around 127.00, and the pair should be looking for an opportunity to hit lower lows, going forward. Please also note that the pair has met with resistance round the Fibonacci 50% levels. It is hence recommended to remain short with risk at 128.50. Immediate resistance is seen at the levels of 128.0/20, while support is seen at 126.00. Bears are expected to remain in control until prices stay below the level of 128.25 at least.
Remain short for now, stop is at 128.50, a target is open.