EUR/JPY reversed from 138.47 and dropped sharply last week. Despite strong intra-week recovery, EUR/JPY's fall resumed towards the end and closed after making a new weekly low. Initial bias will remain on the downside this week for 100% projection of 138.47 to 132.79 from 135.97 at 130.29 first. On the upside, while some recovery might be seen, break of 135.97 resistance is needed to indicate that fall from 1382.47 has completed. Otherwise, further decline is still in favor.

In the bigger picture, note that there is no confirmation that corrective rebound from 112.10 has completed yet as long as 124.35 support holds. Price actions from 137.38 might still turn out to be consolidations to rise from 112.10 only and break above 139.21 would bring another medium term rise before concluding the rise from 112.10. However, note that break of 129.02 will be the first indicate that rise from 112.10 has completed and further break of 124.35 will confirm. in Such case, the whole long term down trend from 169.96 could possibly be resuming and retest of 112.10 should be seen next.

In the long term picture, up trend from 88.96 (00 low) has completed at 169.96 and made a long term top there. Subsequent price actions are either developing into resumption of the multi decide down trend from 285.56, or wide range corrective pattern. In either case, upside should be limited well below 169.96 high and we're expecting at least one more medium term fall after the current rise from 112.10 completes. The final structure of the rebound from 112.10 will provide more indication on whether a test on 88.96 low would be seen.

EUR/JPY

EUR/JPY

EUR/JPY

EUR/JPY

EUR/JPY