EUR/JPY’s rebound from 179.34 continued last week after brief retreat. Current development suggests that whole fall from 187.93 has completed as a three wave correction. Initial bias stays is on the upside this week for 61.8% retracement of 187.93 to 179.34 at 184.64. Decisive break there will pave the way to retest 187.93 high. On the downside, below 183.14 minor support will turn bias neutral again.
In the bigger picture, strong rebound from rising 55 W EMA (now at 180.23) keeps the up trend from 114.42 (2020 low) intact. Break of 187.93 will target 78.6% projection of 124.37 (2022 low) to 175.41 (2025 high) from 154.77 at 194.88. However, sustained break of 55 W EMA will argue that it’s already in a medium term down trend to 175.41 resistance turned support and below.
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 175.41 resistance turned support holds.
