EUR/JPY turned into sideway trading below 186.00 last week. Initial bias stays neutral this week first. Deeper pullback cannot be ruled out, but downside should be contained by 183.90 support to bring rebound. On the upside, above 186.00 will resume the rally from 179.34 to retest 187.42, and then 187.93 high.
In the bigger picture, strong rebound from rising 55 W EMA (now at 180.81) 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.
