Technical outlook and chart setups:
The EUR/JPY pair has dropped lower as discussed earlier and is now trading at the levels of 125.75/76. The pair is facing interim channel line resistance at 126.90 now, as seen here, and could continue moving lower towards 124.60 and 124.00. Bears are expected to remain in control until prices stay below 126.25/50 from here. Please note that 124.00 seems to be in sight before the pair could produce a meaningful retracement. It is hence recommended to remain short and move stop to the level of 126.60. Immediate resistance is seen at 126.30, while support is at 124.60. Only a breakout above 126.50 and subsequently 127.00 would delay the drop.
Trading recommendations:
Remain short, stop is at 126.50, a target is 124.00.
Good luck!
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