EUR/JPY extended its gains for the third consecutive day, trading around 180.60 during Asian hours on Tuesday, despite remaining within a descending channel that signals a persistent bearish bias [1]. Technical analysis indicates the currency cross is maintaining a mildly bearish near-term outlook, as it trades below the 50-day Exponential Moving Average (EMA) and only marginally above the nine-day EMA. This setup suggests that while rallies are capped by the medium-term trend, intraday dips are cushioned by nearby dynamic support [1].
The 14-day Relative Strength Index (RSI) stands at 44.44, just below the neutral 50 mark, pointing to subdued upside momentum rather than oversold conditions [1]. Should EUR/JPY break below the nine-day EMA of 179.98, the bearish bias would intensify, potentially pushing the pair toward the lower boundary of the descending channel at 177.30 and the nearly 11-month low of 175.70 recorded in November 2025 [1]. On the upside, resistance is seen at the 50-day EMA of 182.57, the upper boundary of the descending channel at 185.00, and the all-time high of 187.95 set on April 17 [1].
According to a currency heat map, the Euro was the strongest against the Japanese Yen today, with a 0.14% gain, highlighting relative strength in the EUR/JPY pair compared to other major currencies [1]. No explicit market reactions or analyst opinions were provided in the article, but the technical setup and recent price action suggest cautious optimism tempered by medium-term resistance levels [1].
CONCLUSION
EUR/JPY continues to trade above 180.50, showing mild gains but facing resistance from a persistent bearish technical setup. The Euro's relative strength against the Yen is evident, yet upside momentum remains subdued. Traders should monitor key support and resistance levels for potential shifts in trend.