EUR/JPY’s correction from 133.44 extended lower last week. Further fall could still be seen this week, but downside should be contained above 130.45 resistance turned support to bring rebound. On the upside, break of 132.55 will bring retest of 133.44. Break there will resume larger up trend from 114.42. However, firm break of 130.45 will dampen our bullish view and bring deeper fall back to 127.91 key support.
In the bigger picture, rise from 114.42 (2020 low) is still in progress and the strong support from 55 week EMA affirms medium term bullishness. Further rise would be seen to retest 137.49 (2018 high). Decisive break there will resume the whole long term rise from 109.03 (2016 low). Next target will be 100% projection of 109.03 to 137.49 from 114.42 at 142.88. This will now remain the favored case as long as 127.91 support holds.
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.
