EUR/JPY is expected to trade with a bearish bias. The pair collapsed overnight with the intraday RSI entering the "oversold" area below 30. The level of 186 is holding as the key resistance. Both the 20- and 50-period intraday MAs are turning down, and should push the prices lower. To sum up, even though a technical rebound cannot be ruled out at the current stage, its extent should be very limited. As long as 186 is not surpassed, look for a new pullback towards 183.90.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 183.90. A break of that target will move the pair further downwards to 183.50. The pivot point stands at 186. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 186.55 and the second target at 187.15.

Resistance levels: 186.55 187.15 188

Support levels: 183.90 183.50 182.75