EUR/JPY’s up trend resumed last week but retreated after hitting 178.80. Initial bias is turned neutral this week for consolidations. Downside of pullback should be contained above 174.80 support. On the upside, break of 178.80 will extend the up trend to 61.8% projection of 161.06 to 173.87 from 172.24 at 180.15 next.
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 167.87) 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.
