EUR/JPY's recovery from 126.09 point extended higher last week. Such recovery is still viewed as a correction and 131.28 point minor resistance intact,other fall is expected. Break of 126.09 point will extend the larger fall to 61.8% projection of 149.76 point to 130.13 point from 136.67 point at 124.53 point next. However, break of 131.28 point will indicate near term reversal and turn focus back to 136.67 point resistance instead.
In the bigger picture, the correction from 149.76 point medium term top is still in progress and took out 38.2% retracement of 94.11 point point to 149.76 point at 128.50 point already. Such fall would now extend to 61.8% retracement at 115.36 point, which we might find strong support. In any case, outlook will stay bearish as long as 136.67 point resistance holds and deeper decline is expected.
In the long term picture, rebound from 94.11 point long term bottom is having an impulsive look and thus, indicates that it's far from being finished. While it's possibly now in a medium term correction from 149.76 point, such up trend is expected to resume after the correction completes.
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