EUR/JPY’s fall from 134.11 extended to as low as 128.58 last week but recovered since then. Initial bias remains neutral this week first, and some more consolidations could be seen. But near term outlook stays bearish as long as 131.07 resistance holds. Break of 128.58 will target 127.07 resistance turned support next.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. As long as 127.07 resistance turned support holds, further rise is still expected to retest 137.49 (2018 high). However, firm break of 127.07 will argue that the medium term trend has reversed, and open up the case for retesting 114.42.
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.