The EUR/JPY currency pair continued its decline for the fourth consecutive day, trading around 184.40 during European hours on Friday [1]. Technical analysis indicates that EUR/JPY is positioned just below the upper boundary of a developing descending wedge pattern, which is characterized by lower highs and lower lows, suggesting that while selling momentum persists, it may be losing steam [1]. The pair maintains a bearish near-term outlook, remaining below both the nine-period and 50-period Exponential Moving Averages (EMAs) [1]. The 14-day Relative Strength Index (RSI) stands at 44.70, leaning slightly to the downside and indicating fading bullish momentum rather than an oversold condition [1].
Immediate resistance levels are identified at the nine-day EMA of 184.78, the 50-day EMA at 184.87, and the upper boundary of the descending wedge [1]. A break above this confluence resistance zone could open the path toward the all-time high of 187.95, recorded on April 17 [1]. On the downside, the pair may test the 12-week low of 181.87, reached on March 16, and the five-month low of 180.81, recorded on February 12 [1].
In terms of broader currency performance, the Euro was the weakest against the Japanese Yen among major currencies today, as reflected in the percentage change heat map [1]. This underperformance highlights the current bearish sentiment surrounding the EUR/JPY cross [1].
No forward-looking statements or analyst opinions beyond the technical analysis were provided in the source article [1].
CONCLUSION
EUR/JPY's continued decline below 184.50 and its position beneath key technical levels underscore a bearish near-term outlook. The Euro's relative weakness against the Yen further supports this sentiment, with potential for further downside unless resistance levels are reclaimed. Market participants should monitor the pair's movement around the descending wedge and key support levels for signs of reversal or continued weakness.