The euro-yen pair looks set to continue its steady downtrend, with only a small likelihood of a rally and a longer-term target near 120.
The pair is using the long-term downtrend line as a support level. Rally rebounds face well-established resistance levels created by a legacy of trading bands.
The euro-yen moves between these trading bands, using them alternatively as support and resistance levels; the 127 level is a key support level and is now acting as a resistance level, which the pair is currently testing.
A breakout above the 127 level is a low probability, but if it does develop, then the upside target is near 132.