EUR/JPY's fall fall from 134.36 extended further last week and the break of 126.88 support confirms that whole decline from 138.47 has resumed. Initial bias remains on the downside this week and further fall should be seen to 124.35 support and then 100% projection of 138.47 to 126.88 from 134.36 at 122.77 next. On the upside, above 128.38 minor resistance will argue that a short term bottom might be in place on oversold condition and bring recovery. But upside should be limited below 131.49 support turned resistance and bring fall resumption.
In the bigger picture, the break of 126.88 support revives that case that medium term rebound from 112.10, which is treated as correction to long term down trend from 169.96, has completed last year at 139.21. Break of 124.35 support will further affirm this case. By then, we'll expect such long term down trend to resume for a new low below 112.10. On the upside, break of 134.36 resistance is needed to invalidate this bearish view and suggest that EUR/JPY is still in consolidation to rise from 112.10 only. Otherwise, outlook will remain bearish.
In the long term picture, up trend from 88.96 (00 low) has completed at 169.96 and made a long term top there. The corrective nature of the rise from 112.10 to 139.21 argues that whole fall from 169.96 is note completed yet. A break below 112.10 low will confirm that whole fall from 169.96 has resumed and should then target 61.8% projection of 169.96 to 112.21 from 139.21 at 103.45 or further to 100 psychological support next.