FX.co ★ EUR/JPY

EUR/JPY Technical Analysis (4H Chart) EUR/JPY is currently trading around the 185.17 area after experiencing a strong rejection from the recent highs near 186.30. On the chart, I can see a clear liquidity sweep above the previous resistance zone, where price briefly moved higher before sellers entered aggressively. This move suggests that buy-side liquidity was collected before the market reversed lower. The recent bearish market structure shift (MSS) confirms that short-term momentum has turned negative. Price is now retracing upward into a marked order block (OB) zone between approximately 185.55 and 185.90, which also aligns with the Fibonacci retracement levels around 0.618 and 0.786. I believe this area is the key decision zone for the next move. If sellers defend this region successfully, EUR/JPY could resume its downward trend. The volume spike during the sharp decline from the highs also supports the idea that institutional selling activity was present. As long as price remains below the 185.90–186.00 resistance area, the bearish outlook remains stronger on the 4-hour timeframe.

Looking ahead, I think traders should closely monitor how price reacts inside the highlighted order block zone. A rejection with bearish candles around 185.60–185.90 could trigger another wave of selling toward the first support near 184.80 and then the major low around 184.30 shown on the chart. The projected downside path drawn on the chart suggests a potential continuation toward the 183.80–183.50 region if bearish momentum accelerates. However, buyers are attempting a recovery from recent lows, so a sustained break above 185.90 would weaken the bearish setup and open the possibility of a move back toward 186.20 and potentially the liquidity sweep high near 186.34. For now, I see the market as being in a corrective rally within a broader short-term bearish structure. The descending trendline from the recent high also continues to act as dynamic resistance. Until that trendline and the order block are decisively broken, I prefer to view rallies as selling opportunities rather than signs of a new uptrend. Overall, the technical structure favors caution for buyers while maintaining a bearish bias below the highlighted resistance zone.