EUR/JPY Holds Bullish Bias Post-ECB Pause: Buy Dips Toward 185 as 182 Support Stands Firm

EURJPY  showed a minor pullback after the ECB rate pause. Intraday trend is bullish as long as support 182 holds. The pair posted an intraday high of 183.17 and is now hovering at roughly 182.683.

With no adjustments to APP or PEPP levels, the European Central Bank kept its key interest rates static on December 18, 2025: deposit facility at 2.00%; main refinancing at 2.15%; and marginal lending at 2.40%—indicating balanced inflation risks. Resilient consumption in light of trade tensions pushed Eurozone GDP growth forecasts to 0.9% for 2025 (from 0.8%), 1.4% for 2026, and 1.5% for 2027, but HICP inflation estimates stayed steady at 2.1% for 2025, 1.9% for 2026–2027, with core measures moderating as wage pressures reduced. President Lagarde stressed a data-dependent approach with no preset easing path, highlighting upside dangers from services inflation, fiscal policies, and tariffs, which drove markets to scale back dovish expectations to around 75 basis points of cuts through end-2026.

Technical Estimation:

The EUR/JPY pair is trading above 55 EMA,  200, and below  365-H EMA  on the 4-hour  chart.

• Near-Term Resistance: Around 183, a breakout here could lead to targets at 185.
   
• Immediate Support: At 182.40, if breached, the pair could fall to 182/181.5/181.30/180.87/180/179.70/ 179.20/178.90/178.40/178.
  
  Indicator Analysis  (4-hour chart):
   
• CCI (50): Bullish
   
• Average Directional Movement Index: Neutral

Overall, the indicators suggest a neutral trend

Trading Recommendation:

It is good to buy on dips around 182.48-50 with a stop loss at 182 for a TP of 185.