EUR/JPY’s decline last momentum ahead of 38.2% retracement of 114.42 to 127.07 at 122.23 and turned sideway last week. Initial bias is neutral this week first and some more consolidations could be seen. But further fall is expected as long as 124.31 resistance holds. Firm break of 122.23 will extend the fall from 127.07 to 61.8% retracement at 119.25. However, break of 124.31 will turn bias back to the upside for retesting 127.07 high.
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 119.31 support holds. Break of 127.07 will target 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67 next. However, firm break of 119.31 will argue that the rise from 114.42 has completed and turn focus back to this low.
In the long term picture, EUR/JPY is staying in long term sideway pattern, established since 2000. Another rising leg could have started for 137.49 resistance and above.
