EUR/JPY’s rally from 154.77 continued last week and the late breach of 172.25 temporary top suggests that it’s resuming after brief consolidations. Initial bias is back on the upside this week for 138.2% projection of 154.77 to 164.16 from 161.06 at 174.03. On the downside, below 170.78 support will turn intraday bias neutral and bring consolidations first.
In the bigger picture, price actions from 175.41 (2024 high) are seen as correction to up trend from 114.42 (2020 low). The pattern might still extend with another falling leg. But in that case, strong support should be seen from 38.2% retracement of 114.42 to 175.41 at 152.11 to contain downside. Meanwhile, decisive break of 175.41 will confirm long term up trend resumption.
In the long term picture, there is no sign that the long term up trend from 94.11 (2021 low) has concluded. But firm break of 175.41 is needed to confirm resumption. Otherwise, more medium term range trading could still be seen.
