The pair has broken major support at 128.67 levels in Tuesday's trade and is currently trading around 127.50.
Price action is below all major moving averages on , momentum studies on daily and weekly charts indicate downside.
127 levels next likely stop for EUR/JPY bears, and further weakness could see 126 levels.
Daily Stochs and are in oversold territory, so caution advised, retrace and close above base at 128.60 negates bias.
Resistance lies at 128 (psychological level), ahead of 128.60 ( base), while to the downside, the cross finds immediate support at 126.90 (March 13 low), below that 126.09( April 2015 low).
We would go short on rallies around 127.70/80, SL: 128.50, TP: 127/126.10