EUR/JPY’s downtrend resumed by breaking through 176.19 support and focus is now on 175.26/41 zone. Strong rebound from there, followed by break of 177.95 resistance should indicate short term bottoming, and turn bias back to the upside for 181.53 resistance first. However, decisive break of 175.26/41 will carry larger bearish implications. Next target is 100% projection of 186.00 to 177.82 from 181.53 at 173.35.
In the bigger picture, price action from 187.93 is seen as a corrective pattern to up trend from 154.77 (2025 low). Strong support should be seen from 175.41 cluster support (2025 high) and 38.2% retracement of 154.77 to 187.93 at 175.26 to contain downside. However, decisive break will raise the chance of larger bearish reversal and target 61.8% retracement at 167.43.
