The two theories concerning mixed emotions, adopted in this research is briefly explained. Also discussed are the image codes linked to the mixed emotional words and the way to realize a mechanism using fuzzy inference, in which the internal emotion of a simulated person reacts on a sequence of inputted terms and evokes some emotional change. The relevant part of the theory for subjective observation model to the application of emotion processing system is briefly explained. The construction methodology of the system, which has two functions, is described; one function is that the evoked emotion is transitive depending on the observation, and the other is that the aggregated emotion by the several subjective observations settles to the objective emotion. Some attractive results obtained from the simulated emotion processing system are shown: what kinds of emotions are evoked, and how the emotional transition is done by subjective observations, when a poem is used for the input signal. Lastly, the more expanded emotional Dialog System is introduced.