EUR/JPY’s pull back was contained by 156.85 support last week. Initial bias stays neutral this week first, and more sideway trading could be seen. On the upside, break of 159.75 will resume larger up trend to 163.06 projection target. However, break of 156.85, and sustained trading below 55 D EMA (now at 156.47) will argue that it’s already in a larger scale correction. Deeper fall would then be seen towards 151.39 key support.
In the bigger picture, rise from 114.42 (2020 low) is in progress. Next target is 100% projection of 124.37 to 148.38 from 139.05 at 163.06. Sustained break there will pave the way to retest long term resistance at 169.96. This will remain the favored case as long as 151.39 support holds, even in case of deep pull back.
In the long term picture, rise from 109.03 (2016 low) is seen as the third leg of the whole up trend from 94.11 (2012 low). Next target is 100% projection of 94.11 to 149.76 from 114.42 at 170.07 which is close to 169.96 (2008 high).
