FX.co ★ FX-Perfact | EUR/JPY

EUR/JPY Daily Timeframe: Based on the EUR/JPY chart on the daily timeframe, the pair has been in a fairly solid uptrend since early September. The price structure has formed a consistent series of higher highs and higher lows, reflecting buyer dominance in the medium to long term. This increase pushed the price from the 172.00 area to a peak around 186.80, which became the latest strong resistance. However, after touching the 186.80 area, significant selling pressure emerged, triggering a sharp correction. A large bearish candlestick appeared in early February, indicating widespread profit-taking or distribution. This decline pushed the price back to the 182.00 area, even breaking through minor support around 183.60–184.00, which previously served as a consolidation zone. Technically, the price is currently in the 181.70–182.00 range. The 182.00 area is a key level because it has served as both horizontal support and a price reaction area in recent sessions. If the price is able to hold above this level and form a valid bounce pattern, the potential for a rebound towards the resistance level of 183.60 to 184.00 is open again. A breakout above 184.00 would signal the correction is complete, and the uptrend could potentially continue, retesting 185.50 to 186.80.

Regarding moving averages, the medium-term moving average (MA) (blue line) is still moving upward with a positive slope, indicating that the main trend has not yet fully turned bearish. The price is currently slightly above this MA, which has the potential to act as dynamic support. Meanwhile, the long-term moving average (MA) (red line) is well below the price, indicating that, from a long-term perspective, the bullish structure remains dominant. However, it is important to note that the correction was quite sharp and broke through previous minor support. If the price fails to hold above 181.40 and closes below that level consistently, the potential for further decline towards the next support level at 178.95 becomes a realistic scenario. The 178.95 area serves as important horizontal support and is adjacent to the 100-day moving average (MA), making it a potential strong demand zone. The current price structure indicates a corrective phase within an uptrend. No significant lower lows have formed on the daily timeframe, so this correction can still be categorized as a healthy retracement. However, if the price begins to form lower highs below 184.00 and is followed by a further decline, the likelihood of a bearish structure shift increases. Overall, EUR/JPY remains in a medium-term bullish trend, but is undergoing a technical correction after a long rally. The 182.00 level is the short-term directional indicator, while 184.00 and 186.80 are key resistance levels that must be broken to resume the uptrend. Traders should closely monitor price reactions at key support areas and pay attention to price action confirmation before making any decisions, given the pair's high volatility in recent weeks.