EUR/JPY rebounded further to 118.52 last week but retreated since then. Initial bias remains neutral this week first and further rise is mildly on favor. On the upside, break of 118.52 will target 121.14 resistance next. However, break of 115.32 should confirm completion of rebound from 114.42 and bring retest of this low.
In the bigger picture, there is no clear sign of trend reversal yet. EUR/JPY is staying well inside falling channel and below falling 55 week EMA. Deeper fall could be seen to retest 109.48 (2016 low) next. On the upside, break of 122.87 resistance is needed to confirm medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.
In the long term picture, EUR/JPY is staying in long term sideway pattern, established since 2000. Fall from 137.49 is seen as a falling leg inside the pattern. This falling leg would target 109.48 (2016 low). With EUR/JPY staying below 55 month EMA (now at 124.52), this is the preferred case.