EUR/JPY Consolidation Ahead: Rally or Reversal?

The EUR/JPY currency pair is experiencing some consolidation after its recent retreat. According to Action Forex's analysis, the bias in the market has turned neutral, and a further rally is expected as long as the support level of 183.90 holds.

As of now, the pair is seen consolidating around key levels such as 186.00, which is a crucial point for the continuation of the up trend from 2020's low at 114.42. If 187.93 is broken, it could trigger further gains, potentially reaching the 78.6% projection of the move from 124.37 to 175.41.

However, if the market breaks below its 55-week exponential moving average (EMA), which currently stands at 180.81, it may indicate a change in trend and a shift towards a medium-term down trend.