Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading at 123.60 levels at this moment, after hitting lows at 122.40/50 levels yesterday. Please note that the pair had reversed lower from fibonacci 128.30 levels earlier, and could continue drifting lower below 122.00 levels going forward. A potential pullback rally is possible through 125.00/126.00 levels, though, before the downtrend continues. A break above 129.00 levels would breach trend line resistance and indicate that a meaningful bottom is now formed for prices to push further upwards. It is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at 121.95 levels, while resistance is at 126.00 and then 128.40/50 levels respectively.

Trading recommendations:

Book profits on short positions taken earlier and remain flat for now.

Good luck!