EUR/JPY’s rebound from 125.07 extended higher last week. The development suggests that correction from 127.38 has completed already. Initial bias stays on the upside for 127.48 resistance first. Break there will resume larger rise from 114.42 to 128.67 fibonacci level. On the downside, break of 126.26 minor support will delay the bullish case and turn bias neutral again first.
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 121.63 support holds. Next target is 61.8% retracement of 137.49 (2018 high) to 114.42 at 128.67. Sustained trading above there will target 137.49 next. However, firm break of 121.63 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.
