Technical outlook and chart setups:
The EUR/JPY pair remains unchanged for now with respect to structure and price action. The pair continues to consolidate between 125.20 and 126.50 levels as discussed yesterday. It is required to break below 125.00 or above 126.50 to confirm the next major direction. Since the rally from 122.00 levels has unfolded into 3 waves, it is still corrective in nature and hence a high probability of a drop lower still exists. It is hence recommended to remain short, with risk above 127.50 levels. Immediate support is at 125.00/20 levels while resistance is seen at 127.20/30 levels respectively. Also note that prices remain in the sell zone of its resistance trend line for now, supporting a bearish view.
Remain short for now, stop at 127.50, target is open.