EUR/JPY’s rebound from 182.02 extended higher last week but retreated just ahead of 184.75 resistance. Initial bias remains neutral this week first. On the upside, break of 184.75 will resume the rise from 180.78 to retest 186.86 high. On the downside, however, below 183.17 minor support will turn bias back to the downside for 182.02 and below.
In the bigger picture, a medium term top could be in place at 186.86 and some more consolidations would be seen. Nevertheless, as long as 55 W EMA (now at 175.93) holds, the larger up trend from 114.42 (2020 low) remains intact. Firm break of 186.86 will pave the way to 78.6% projection of 124.37 (2022 low) to 175.41 (2025 high) from 154.77 at 194.88 next.
In the long term picture, up trend from 94.11 (2021 low) is in progress. Next target is 138.2% projection of 94.11 to 149.76 (2014 high) from 114.42 (2020 low) at 191.32. This will remain the favored case as long as 154.77 support holds.
