EUR/JPY’s rebound from 133.38 resumed last week and matched 100% projection of 133.38 to 138.38 from 135.50 at 140.50 already. Further rise in favor this week as long as 138.34 minor support holds. Firm break of 140.50 will target 144.26 high next. On the downside, break of 138.24 will turn bias back to the downside for 135.50 support instead.
In the bigger picture, up trend from 114.42 (2020 low) is seen as the third leg of the pattern from 109.30 (2016 low). Further rally is in favor as long as 134.11 resistance turned support holds, even in case of deep pull back. Next target is 149.76 (2015 high). However, sustained break of 134.11 will be a sign of medium term bearish reversal and turn focus to 124.37 support for confirmation.
In the long term picture, up trend from 94.11 (2012 low) is seen as in the third leg. Further rally would be seen to 149.76 resistance (2014 high) and above. This will remain the favored case as long as 55 month EMA (now at 129.33) holds.
