EUR/JPY rebounded strongly last week but failed to sustain above 125.08 resistance and retreated. Initial bias is neutral this week first. On the upside, firm break of 125.08 should confirm completion of the corrective decline from 127.07 at 121.63. Further rise should be seen to retest 127.07 high. However, break of 123.18 will turn bias to the downside for 121.63, to extend the correction.
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.
