EUR/JPY dropped to 128.59 last week but recovered since then. Initial bias is neutral this week first. On the downside, break of 128.59 will target a test on 127.91 low first. Break there will resume larger decline from 134.11 to 127.07 key support level next. On the upside, however, break of 129.65 will turn bias back to the upside for 130.73 resistance.
In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. As long as 127.07 resistance turned support holds, further rise is still expected to retest 137.49 (2018 high). However, firm break of 127.07 will argue that the medium term trend has reversed, deeper fall would be seen to 61.8% retracement of 114.42 to 134.11 at 121.94.
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.
