Technical outlook and chart setups:

The EUR/JPY pair dropped to the support zone around 128.00/129.00 and could be preparing to rally towards 131.00/50 at least. It is hence recommended to initiate fresh long positions with risk below 128.00 for now. Bulls seem to be poised to push higher untill prices stay above the level of 128.00. Immediate support is seen at 128.00 followed by 127.00 and lower, while resistance is seen at 131.00/50, followed by 133.50 and higher respectively. A push through 131.50 would be extremely encouraging to bulls and target at 133.00-136.50 levels.

Trading recommendations:

Initiate long positions, stop below 128.00, target is open.

Good luck!