EUR/JPY reversed after initial rise to 171.58 last week and fell sharply. Initial bias remains on the downside this week. Sustained break of 55 D EMA (now at 163.94) will extend the fall from 171.58 to 61.8% retracement of 153.15 to 171.58 at 160.19. On the upside, above 167.37 will turn bias neutral.
In the bigger picture, a medium top could be formed at 171.58 after brief breach of 169.96 (2008 high). As long as 55 W EMA (now at 157.53) holds, fall from there is seen as correcting the rise from 153.15 only. However, sustained break of 55 W EMA will argue that larger scale correction is underway and target 153.15 support.
In the long term picture, rise from 114.42 (2020 low) is seen as the third leg of the whole up trend from 94.11 (2012 low). 100% projection of 94.11 to 149.76 from 114.42 at 170.07 was already met but there is not signal reversal yet. Firm break of 170.07 will target 138.2% projection at 191.32. This will remain the favored case as long as 153.15 support holds.
