EUR/JPY Weekly Price Outlook

EUR/JPY recovered to 178.46 last week before pulling back. The short‑term outlook is neutral early in the week, with modest upside risk. A move above 178.46 could restart the rally from 175.04 toward the 181.53 resistance level, while a sustained breach of the 175.26‑41 zone would reinforce bearish pressure, extending the decline from the recent high of 187.93.

In a broader context, the price movement since the 187.93 peak appears as a corrective phase within the larger uptrend that began at 154.77 in 2025. Key support is expected around the 175.41 cluster (the 2025 high) and the 38.2% retracement level at 175.26, which should cap downside. A decisive break below this support could increase the likelihood of a deeper bearish reversal, with a target at the 61.8% retracement level of 167.43.

Looking ahead, the long‑term outlook remains bullish so long as the 175.41 level, now acting as support, holds. The uptrend that started at 94.11 in 2021 is expected to resume toward 187.93 in due course. Nevertheless, a bearish MACD divergence suggests that a firm break below 175.41 could signal a major top, with a target near the 55‑period exponential moving average at 163.95.

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