EUR/JPY Declines Further, Eyes Support at 175.26/41

The EUR/JPY currency pair has continued its decline from its high of 187.93 last week, breaking through the key support level of 177.82 and falling to a new low. As a result, the initial bias remains on the downside for this week, with traders looking for support at the levels of 175.26/41.

However, it's worth noting that strong support is expected at these levels, potentially bringing about a rebound in the currency pair. On the other hand, if the price manages to break above the minor resistance level of 179.29, the intraday bias will shift to neutral, and traders will need to reassess their positions.

Looking at the bigger picture, the decline from 187.93 is seen as a corrective pattern within an uptrend that started from 154.77 in 2025. While deeper falls cannot be ruled out, with targets potentially reaching 175.41 cluster support and 38.2% retracement of 154.77 to 187.93 at 175.26, the market is expected to find strong support there.

However, a decisive break below this level could raise the chances of a larger bearish reversal and target the 61.8% retracement at 167.43. Furthermore, in the long-term picture, as long as the 175.41 resistance-turned-support holds, the uptrend from 94.11 in 2021 is still expected to resume through 187.93 at a later stage.