The EUR/JPY currency pair depreciated after modest gains, trading around 185.60 during European hours on Wednesday, but continues to maintain a bullish bias according to technical analysis of the daily chart [1]. The pair remains within an ascending channel pattern, holding above both the nine- and 50-period Exponential Moving Averages (EMAs), which signals persistent upward pressure [1]. The short-term averages are stacked above the longer-term average, further supporting the constructive tone [1].
The 14-day Relative Strength Index (RSI) stands at 57.38, indicating positive momentum that is not yet overbought, suggesting there is room for additional gains while upside momentum remains moderate [1]. Should the bullish trend persist, EUR/JPY may rise toward its all-time high of 187.95 set on April 17, with the next resistance at the upper boundary of the ascending channel around 188.20 [1].
On the downside, the immediate support is found at the lower boundary of the ascending channel, aligned with the nine-day EMA at 185.19 and the 50-day EMA at 184.72 [1]. A break below this confluence support zone could trigger a bearish reversal, potentially pushing the pair toward its nine-month low of 179.37, recorded on August 3 [1].
In broader currency market movements, the Euro showed a 0.19% gain against the Japanese Yen today, while it was the weakest against the Australian Dollar [1]. The technical analysis and market data suggest that while the EUR/JPY cross is currently constructive, traders are closely watching the key support and resistance levels for potential breakout or reversal signals [1].
CONCLUSION
EUR/JPY is currently trading with a bullish bias above key support levels, with technical indicators suggesting room for further gains toward previous highs. However, a break below the confluence support could shift momentum to the downside. Market participants should monitor these technical levels for potential trading opportunities.