EUR/JPY’s retreat from 164.29 finished at 161.22 and recovered since then. Initial bias stays mildly on the upside this week for retesting 164.29 first. Firm break there will resume larger up trend. On the downside, however, break of 162.42 minor support will turn bias back to the downside, to extend the corrective pattern from 164.29 with another falling leg.
In the bigger picture, rise from 114.42 (2020 low) is in progress. Next target is 169.96 (2008 high). On the downside, break of 159.75 resistance turned support is needed to be the first sign of medium term topping. Otherwise, outlook will remain bullish even in case of deep pullback.
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).
