**BREAKING: EUR/JPY Pulls Back After Three-Day Rally, Bulls Still in Control**
EUR/JPY has retreated from recent gains, trading around 186.20 during Wednesday’s Asian session after a three-day advance. Despite the pullback, technical indicators suggest the bullish momentum remains intact, with the cross holding firmly above both the nine-day and 50-day Exponential Moving Averages—key support levels that typically signal continued upward pressure.
Market analysts are now eyeing a potential rebound toward the 186.50 level as buying interest persists. The current positioning above critical EMAs indicates traders are maintaining constructive sentiment on the euro against the yen, suggesting any dips may be viewed as buying opportunities rather than trend reversals.
The pair’s resilience comes amid ongoing divergence between European Central Bank and Bank of Japan monetary policies, with the JPY remaining under pressure from ultra-loose Japanese monetary conditions. Traders should monitor these technical support zones closely for potential entry points.
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FXnCO Insight
** Watch the 186.20 zone for support—a hold above both EMAs favors dip-buying strategies targeting 186.50 resistance.
Source: FXStreet