EUR/JPY’s pullback from 186.00 extends lower today but downside is contained well above 183.90. Intraday bias remains neutral and further rally is expected. On the upside, above 186.00 will resume the rally from 179.34 to retest 187.42, and then 187.93 high. However, decisive break of 183.90 will suggest that the rebound from 179.34 has completed.
In the bigger picture, strong rebound from rising 55 W EMA (now at 180.96) keeps the up trend from 114.42 (2020 low) intact. Break of 187.93 will target 78.6% projection of 124.37 (2022 low) to 175.41 (2025 high) from 154.77 at 194.88. However, sustained break of 55 W EMA will argue that it’s already in a medium term down trend to 175.41 resistance turned support and below.
