EUR/JPY edged higher to 130.33 last week but dropped sharply after failing to sustain above 55 day EMA. Initial bias is neutral this week with focus on 127.69 minor support. Break should indicate completion of whole rebound from 124.61 at 130.33. And deeper decline would be seen back to retest 124.61 first. On the upside, break of 130.33 will resume the rebound from 124.61 to retest 133.47 resistance.
In the bigger picture, despite rebounding strongly ahead of 124.08 resistance turned support, there was no clear follow through buying. Note again that there is bearish divergence in daily MACD. Firm break of 124.08 will confirm trend reversal. That is, whole rise from 109.03 (2016 low) has completed at 137.49 already. In that case, deeper fall should be seen back to 61.8% retracement of 109.03 to 137.49 at 119.90 and below. Nonetheless, decisive break of 133.47 key resistance will likely extend the rise from 109.03 through 137.49 high.
In the long term picture, at this point, EUR/JPY is staying in long term sideway pattern, established since 2000. Rise from 109.03 is seen as a leg inside the pattern. As long as 124.08 support holds, further rally is in favor in medium to long term through 149.76 high. However, break of 124.08 could extend the fall through 109.03 low instead.