EUR/JPY’s pullback from 177.91 extended lower last week but failed to sustain below 175.03 resistance turned support. Initial bias remains neutral this week and further rally is in favor. Above 176.44 minor resistance will turn bias back to the upside for retesting 177.91. However, decisive break of 175.03 will bring deeper decline back to 172.24 support instead.
In the bigger picture, up trend from 114.42 (2020 low) is in progress and should target 61.8% projection of 124.37 to 175.41 from 154.77 at 186.31. Firm break of 172.24 support will suggests that it has turned into consolidations again. But still, outlook will continue to stay bullish as long as 55 W EMA (now at 167.16) holds, even in case of deep pullback.
In the long term picture, up trend from 94.11 (2021 low) is in progress. Next target is 138.2% projection of 94.11 to 149.76 (2014 high) from 114.42 (2020 low) at 191.32. This will remain the favored case as long as 154.77 support holds.
