EUR/JPY rose further to as high as 130.73 last week, but formed a temporary top there a retreated. Initial bias is neutral this week for some consolidations first. Breach of 130.54 resistance argues that corrective fall from 134.11 has completed at 127.91 already. Hence, further rise is now in favor as long as 129.14 support holds. Break of 130.73 will resume the rebound from 127.91 to 132.68 resistance next. However, break of 129.14 will dampen this bullish view and bring retest of 127.91 low instead.

In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. As long as 127.07 resistance turned support holds, further rise is still expected to retest 137.49 (2018 high). However, firm break of 127.07 will argue that the medium term trend has reversed, deeper fall would be seen to 61.8% retracement of 114.42 to 134.11 at 121.94.

In the long term picture, EUR/JPY is staying in long term sideway pattern, established since 2000. Another rising leg in progress for 137.49 resistance and above.



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