The EUR/JPY currency pair continued its decline for a second consecutive day, trading around 176.90 during Asian hours on Tuesday, and remaining below the 177.00 level as a bearish bias prevails [1]. Technical analysis indicates the pair is confined within a descending channel pattern, with the 14-day Relative Strength Index (RSI) at 32.75, just above oversold territory, suggesting persistent downside pressure even as the sell-off becomes stretched [1]. The cross is trading below both the 9- and 50-day Exponential Moving Averages (EMAs), reinforcing the near-term bearish outlook [1].
Key technical levels are in focus: initial support lies at the lower boundary of the descending channel near 176.00, with a break below this level exposing the 11-month low of 175.70, recorded in November 2025. Should selling intensify, further declines could target the 14-month low at 169.72 [1]. On the upside, resistance is seen at the 9-day EMA of 177.44 and the 50-day EMA at 180.47. A decisive move above these levels could trigger a bullish reversal, with the upper boundary of the channel at 183.90 and the all-time high of 187.95, reached on April 17, as potential targets [1].
In terms of broader currency performance, the Euro was the weakest against the Japanese Yen among major currencies today, with the EUR/JPY cross showing a -0.07% change [1]. This underperformance highlights the current vulnerability of the Euro relative to the Yen. Meanwhile, analysts at Commerzbank noted that Japanese investors have been net sellers of long-term French bonds over the past twelve months, but have returned as buyers in the past three months. Commerzbank concludes that it is unlikely Japanese investors were responsible for recent volatility in the French bond market [1].
No direct market reaction or forward-looking analyst opinions specific to EUR/JPY were provided in the other sources. However, the overall risk environment, including safe-haven flows into the Yen amid geopolitical tensions, may be indirectly supportive of the current bearish trend in EUR/JPY [1][2][3].
CONCLUSION
EUR/JPY remains under pressure, trading below 177.00 and exhibiting a clear bearish bias as technical indicators point to further downside risk. The Euro's weakness against the Yen is pronounced, and key support levels are in focus for potential further declines. Market participants should monitor these technical thresholds for signs of a reversal or continued bearish momentum.