EUR/JPY Price Action Shifts to Downside Risk

The EUR/JPY currency pair has been experiencing range trading, keeping its intraday bias neutral. However, as long as the 38.2% retracement of 187.93 to 177.82 at 181.68 holds, risk will be on the downside.

A firm break of 177.82 would extend the decline from 187.93 to 175.26/41 support. This could potentially lead to a deeper fall towards 175.41 cluster support (2025 high) and 38.2% retracement of 154.77 to 187.93 at 175.26 before completion.

In the bigger picture, the price action from 187.93 is seen as a corrective pattern to up trend from 154.77 (2025 low). For now, risk will stay on the downside as long as 186.00 resistance holds, in case of rebound.