EUR/JPY extended the correction from 132.35 last week but drew support from 4 hour 55 EMA and recovered. Yet, initial bias remains neutral this week first as correction from 132.35 could still extend with another fall. Even in that case, downside should be contained well above 129.57 support. On the upside, firm break of 132.35 will resume the larger up trend for 100% projection of 114.42 to 127.07 from 121.63 at 134.28.
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 127.07 resistance turned support holds. Next target is 137.49 (2018 high). Decisive break there will open up the possibility that it’s indeed resuming the up trend from 94.11 (2012 low).
In the long term picture, EUR/JPY is staying in long term sideway pattern, established since 2000. Another rising leg in progress for 137.49 resistance and above.
