Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading higher at 122.24 levels, after hitting lows at 121.45/50 levels last week. The drop from 126.40 levels looks to be an impulse (5 waves). A rally above 123.00 levels would confirm that a meaningful low has been formed at 121.45 levels and that the countertrend might push the price higher into 124.50 levels. It is hence recommended to remain flat for now and wait for the pair to break above 123.00/30 levels at least, to go long again. Immediate support is seen at 122.47 levels, while resistance is seen at 123.00 levels. Bulls might be poised to push the pair higher, till EUR/JPY remains above 121.50 levels.

Trading recommendations:

Remain flat for now, looking to buy at lower levels.

Good luck!