EUR/JPY edged higher to 130.95 last week but quickly retreated. Nevertheless, downside was contained by 129.56 minor support. Initial bias remains neutral this week first and further rise is mildly in favor. On the upside, firm break of 130.95 will resume larger rise from 114.42 to 100% projection of 114.42 to 127.07 from 121.63 at 134.28. However, on the downside, break of 129.56 support would turn bias to the downside for deeper correction to 128.28 support.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. Further rise is expected as long as 127.07 resistance turned support holds. Next target is 137.49 (2018 high). Decisive break there will open up the possibility that it’s indeed resuming the up trend from 94.11 (2012 low).
In the long term picture, EUR/JPY is staying in long term sideway pattern, established since 2000. Another rising leg in progress for 137.49 resistance and above.
