The EUR/JPY currency pair gained ground after experiencing modest losses the previous day, trading around 185.10 during early European hours on Thursday [1]. The pair rebounded from the lower boundary of its ascending channel pattern, indicating a short-term bullish bias, but remains capped as it tests a resistance cluster formed by the nine-period and 50-period Exponential Moving Averages (EMAs) [1]. The 14-day Relative Strength Index (RSI) is around 48, suggesting subdued and range-bound momentum rather than a strong directional move [1].
Currently, EUR/JPY is testing the immediate resistance at the 50-day EMA of 185.13, followed by the nine-day EMA at 185.32. A decisive break above these levels could reinforce the bullish outlook and potentially allow the pair to target the all-time high of 187.95, recorded on April 17, and the upper boundary of the ascending channel near 188.40 [1]. On the downside, the primary support is at the lower boundary of the ascending channel around 184.80. A sustained break below this level could lead to further declines toward the four-month low of 181.87 (March 16) and the six-month low of 180.81 (February 12) [1].
In terms of broader currency performance, the Euro was the strongest against the Japanese Yen among major currencies today, with a 0.19% gain [1]. The heat map data further confirms the Euro's relative strength against the Yen in the current session [1].
No explicit market reactions or analyst opinions were provided in the article, but the technical setup suggests traders are closely watching the resistance and support levels for potential breakout or breakdown scenarios [1].
CONCLUSION
EUR/JPY has rebounded above 185.00, showing short-term bullish momentum but faces key resistance levels that could determine its next move. The Euro is currently outperforming the Japanese Yen among major currencies. Market participants are likely to monitor technical levels closely for signs of a sustained trend.