EUR/JPY gyrated higher last week but after all, it’s staying in consolidation from 127.48. Initial bias remains neutral this week first. In case of another fall, downside should be contained by 125.07 support to bring rebound. On the upside, firm break of 127.48 will resume larger rise from 114.42, and target 128.67 fibonacci level.
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.
