EUR/JPY’s correction from 139.99 extended lower last week, but a temporary low should be in place at 132.63. Initial bias is neutral this week first. Risk stays on the downside as long as 138.33 resistance holds. Below 132.63 will target 61.8% retracement of 124.37 to 139.99 at 130.33.
In the bigger picture, up trend from 114.42 (2020 low) is in progress. Such rise is seen as the third leg of the pattern from 109.30 (2016 low). Next target will be 100% projection of 114.42 to 134.11 from 124.37 at 144.06. In any case, outlook will now remain bullish as long as 124.37 support holds, in case of deep pull back.
In the long term picture, focus stays on 137.49 resistance (2018 high). Sustained break there will raise the chance that whole rise from 94.11 (2012 low) is resuming through 149.76 resistance. This will be a slightly favored case for now, as long as 124.37 support holds.