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The intraday bias for the EUR/JPY pair has shifted to neutral following a recent pullback, suggesting that a period of short-term consolidation may occur before the broader trend resumes. Despite this temporary pause, the overall outlook remains bullish as long as the critical support level at 183.90 remains intact. A sustained breakout above the 186.00 threshold is expected to extend the upward movement that began from 179.34, targeting a retest of the resistance levels at 187.42 and potentially 187.93.
From a technical perspective, this price action holds significant relevance for currency market participants monitoring key support and resistance zones. The market structure continues to favor upside momentum, sustained by broader structural buyers defending dynamic moving average levels on higher timeframes. Traders should pay close attention to price behavior around short-term support levels to assess whether buyers will step in to continue the upward trend.
Looking ahead, a breach below the critical 183.90 support level would weaken the immediate bullish thesis and signal a deeper corrective phase towards lower technical supports. Conversely, a clear daily move past 186.00 will open the path for buyers to challenge historical highs. Market participants will likely track upcoming Eurozone and Japanese economic data, alongside overall global risk appetite, to confirm the next directional breakout.
