The EUR/JPY currency pair steadied around 185.60 during Asian trading hours on Thursday after posting modest gains the previous day, maintaining a constructive bullish bias as it trades above key moving averages. The nine-day Exponential Moving Average (EMA) has crossed above the 50-day EMA, indicating a bullish shift in momentum, while the pair also remains above the session Volume-Weighted Average Price (VWAP) and the 14-day Relative Strength Index (RSI) is near 55, suggesting positive but not overstretched momentum. This technical setup implies that buyers are in control as long as these support levels are defended [1].
Technical analysis of the daily chart shows EUR/JPY positioned at the upper boundary of a symmetrical triangle around 185.60, signaling the potential for an imminent bullish breakout. A decisive close above this level would confirm the breakout and could trigger a sharp rally toward the all-time high of 187.95, which was recorded on April 17. On the downside, primary support levels are identified at the VWAP (185.28), nine-day EMA (185.13), and 50-day EMA (184.99). A break below the triangle's lower boundary at 183.70 would expose the four-month low of 181.87 (March 16) and the six-month low of 180.81 [1].
In terms of broader currency performance, the Euro was the strongest against the US Dollar, with a 0.08% gain, and showed a 0.01% increase against the Japanese Yen. The heat map of major currencies indicates that the Euro is generally performing well against its peers, further supporting the constructive outlook for EUR/JPY in the near term [1].
No explicit forward-looking statements or analyst opinions beyond the technical analysis are provided in the source article [1].
CONCLUSION
EUR/JPY is testing a key technical resistance at the top of a symmetrical triangle, with bullish momentum supported by moving averages and a positive RSI. A confirmed breakout above 185.60 could lead to a rally toward the all-time high, while failure to hold support levels may trigger a deeper correction. The market currently favors the bulls, but traders should watch for confirmation of a breakout or breakdown.