EUR/JPY extended its gains for the second consecutive day, trading around 186.20 during Asian hours on Wednesday, and is currently testing the upper boundary of an ascending triangle pattern on the daily chart, indicating growing bullish momentum and the potential for a breakout to the upside [1]. The pair is maintaining a bullish near-term bias, holding above both the nine-period and 50-period Exponential Moving Averages (EMAs), with the 14-day Relative Strength Index (RSI) at 57.48, suggesting constructive but not overbought momentum [1].
A decisive break above the triangle could trigger a strong bullish continuation, potentially exposing the all-time high of 187.95, which was recorded on April 17 [1]. On the downside, primary support is identified at the nine-day EMA of 185.66, with further support at the 50-day EMA of 185.18 and the lower edge of the ascending triangle near 185.10. A sustained break below this pattern would undermine the bullish setup and could expose EUR/JPY to deeper downside toward the five-month low of 181.87 (March 16) and the seven-month low of 180.81 [1].
According to a table of percentage changes, the Euro was the strongest against the Japanese Yen among major currencies today, with a 0.05% gain [1]. This relative strength further supports the constructive technical outlook for EUR/JPY in the near term [1].
No explicit analyst opinions or forward-looking statements beyond the technical analysis were provided in the source article [1].
CONCLUSION
EUR/JPY is showing strong bullish momentum as it tests a key technical resistance level, with the potential for a breakout toward its all-time high if current conditions persist. The Euro's relative strength against the Yen supports this outlook, though a break below support levels could shift the bias to the downside. Market participants should monitor price action around the ascending triangle for confirmation of the next directional move.