EUR/JPY has recovered its recent losses from the previous trading day and is currently hovering around 184.40 during European hours on Monday [1]. Technical analysis indicates the currency pair is consolidating within an ascending triangle pattern, suggesting a period of sideways movement. A sustained breakout above the triangle would confirm a bullish continuation [1].
The EUR/JPY cross maintains a mild bullish bias, as price action remains above the 50-day Exponential Moving Average (EMA) and respects the nine-day EMA as dynamic support. The short-term average is above the medium-term gauge, preserving an upward configuration despite recent sideways candles. The 14-day Relative Strength Index (RSI) stands at 55.36, above the 50 midline, indicating moderate buying pressure rather than overextended momentum [1].
Immediate resistance is located at the upper boundary of the ascending triangle around 184.70. If EUR/JPY advances above this level, it could reinforce the bullish bias and potentially target the all-time high of 186.88, which was reached on January 23 [1]. On the downside, immediate support is at the psychological level of 184.00, followed by the nine-day EMA at 183.94 and the 50-day EMA at 183.46. The lower boundary of the triangle is around 182.90. A break below this level would shift the bias to bearish and could lead EUR/JPY to test the nearly four-month low of 180.81, recorded on February 12 [1].
The Euro was the strongest against the US Dollar today, with a 0.41% gain, and also showed a 0.20% increase against the Japanese Yen. The heat map of major currencies highlights the Euro's relative strength in today's trading session [1].
CONCLUSION
EUR/JPY is consolidating within an ascending triangle, with technical indicators pointing to a mild bullish bias and moderate buying pressure. A breakout above 184.70 could reinforce bullish momentum, while a drop below 182.90 would shift sentiment to bearish. The Euro's strength against major currencies, particularly the US Dollar and Japanese Yen, supports a positive outlook for EUR/JPY in the near term.