Technical outlook and chart setups:
The EUR/JPY pair has pulled back towards 126.50 levels for now, after printing interim lows ahead of 125.00 levels earlier. The pair is looking to continue its drop lower from here, with immediate resistance seen at 127.30 levels. Bears are expected to remain in control till prices stay below 127.30/50 levels, going forward. The structure also indicates that the corrective rally from 122.00 levels unfolded into 3 waves and terminated at 127.30 levels earlier. A 5-wave decline is just underway from 127.30 levels, it seems. It is hence recommended to remain short for now, with risk at 127.50 levels. Immediate support is seen at 125.00 levels (interim), while resistance is seen at 127.30 levels respectively.
Remain short, stop at 127.50, target is open.