Technical outlook and chart setups:

The EUR/JPY pair has finally produced a sharp reversal after hitting highs at 118.47/50 levels. The pair has dropped below 115.30 levels as discussed earlier and is seen to be trading at 114.60/70 levels at this moment, within just 3 trading sessions. Please note that EUR/JPY has carved out an expanded flat A-B-C structure and could possibly terminate around 113.50 levels at the most. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels (not seen here) and should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to book at least partial profits on short positions taken earlier, also move risk to breakeven levels on the remaining positions. Immediate intermediary support is seen at 114.50 levels, while resistance is at 116.70 levels respectively. Bears are expected to remain in control till prices hit 113.50 levels.

Trading recommendations:

Book partial/full profits on short positions taken earlier.

Good luck!