Technical outlook and chart setups:

The EUR/JPY pair has just managed to take out initial resistance at the level of 128.50 on the H4 chart. According to the Fibonacci ratio spread here, the level of 127.00 remains strong support. The pair could be preparing to retrace lower from current levels towards 127.00 before resuming its previous rally. It is hence recommended to remain flat for now and look for an opportunity to go long again at 127.00. Immediate support is seen at 127.50/60 followed by 127.00 and lower, while resistance is seen at 129.00 followed by 130.75 and higher.

Trading recommendations:

Remain flat for now and look for an opportunity to buy again at 127.00.

Good luck!