Low volatility keeps EUR/JPY in a very narrow range, which there seem to be no escape from at this point. EUR/JPY looks toppish near 125.45 and renewed downside pressure is expected from here, but we need a break below minor support at 124.94 and more importantly below support at 124.45 to trigger the next larger move. A break below 124.45 will call for a decline to 123.65 and longer term likely lower towards 120.95, before the correction from 127.50 completes.
That said, we need to be alert to a break above 126.18, that will confirm that the correction from 127.50 already has completed and will shift the bias to up for a retest of the 127.50 peak on the way higher to 129.50 and 131.50.
We are short EUR from 124.25 with our stop placed at 126.20The material has been provided by InstaForex Company - www.instaforex.com