Technical outlook and chart setups:

The EUR/JPY pair drops to the level of 127.00 and reverses sharply to take out initial resistance at 129.06. Now ,the pair has confirmed that a meaningful low at the level of 127.00 is in place and a potential rally can be expected from here. It is recommended to initiate fresh long positions at current levels (128.60), with risk below 126.50. Immediate interim support is seen at 127.00, while major resistance is seen at 137.50 on the daily chart setup. The pair could initiate a corrective 3 wave rally from here and bulls should be poised to remain in control now, untill prices stay above the level of 127.00.

Trading recommendations:

Remain long, stop at 126.50, target is open.

Good luck!