EUR/JPY Hits Resistance as Uptrend Faces Medium-Term Test

The EUR/JPY currency pair has continued its upward trend, breaking through the 186.30 level last week and reaching as high as 187.93. While the initial bias remains on the upside for a potential retest of this high, it's crucial to note that this rebound is considered a corrective move.

This means strong resistance is expected from 187.93, limiting further gains. On the downside, if the support level at 185.32 is breached, intraday bias will shift to neutral.

Looking at the bigger picture, the uptrend from the 2020 low of 114.42 is still expected to resume at a later stage, targeting the 194.88 level based on a 78.6% projection of the 124.37 and 175.41 levels.

However, if the EUR/JPY pair were to sustain a break below its 55-week exponential moving average (EMA) at 180.17, it would argue that the medium-term trend is down towards the 175.41 level.