EUR/JPY Rally Stalls at Strong Resistance Near 188
The EUR/JPY currency pair has resumed its upward rally after a brief consolidation period. The current bias is still on the upside, but strong resistance is expected from the high of 187.93. If this level is breached, it could indicate a near-term reversal.
On the downside, if the support at 186.15 is broken, the bias will turn neutral first. However, a decisive break above 187.93 would confirm the resumption of the larger uptrend to reach the 78.6% projection of 124.37 to 175.41 from 154.77.
In the bigger picture, the uptrend from the 2020 low of 114.42 is expected to resume at a later stage to reach the 194.88 level. However, if the 55 W EMA (now at 180.40) is broken, it could argue that the pair is already in a medium-term downtrend to 175.41 resistance turned support.