The EUR/JPY currency pair traded around 185.80 during Asian hours on Friday, showing little movement after modest gains in the previous day [1]. The pair is maintaining a constructive bullish bias, as it remains above both the nine-day and 50-day Exponential Moving Averages (EMAs), with the shorter nine-day EMA positioned above the 50-day EMA, indicating a supportive trend backdrop [1]. The 14-day Relative Strength Index (RSI) is near 56, suggesting that upside momentum is intact but not yet overbought [1].
Technical analysis indicates that EUR/JPY is trading close to the upper boundary of a descending channel pattern, specifically around 186.20. A sustained break above this channel would confirm a bullish trend, potentially allowing the pair to test the all-time high of 187.95, which was recorded on April 17 [1]. On the downside, primary support is found at the nine-day EMA of 185.60, followed by the 50-day EMA at 185.10. If the pair falls below these moving averages, it could trigger a bearish reversal, with further downside targets at the three-month low of 181.87 (March 16) and the nearly six-month low of 180.81 (February 12) [1].
In terms of broader currency performance, the Euro was the strongest against the Australian Dollar, with a 0.14% gain, and showed little change against the US Dollar and Japanese Yen, with percentage changes of 0.04% and 0.00% respectively [1]. No specific market reactions or analyst opinions were provided in the article.
CONCLUSION
EUR/JPY remains in a technically bullish position, trading near key resistance levels and supported by positive momentum indicators. A break above the descending channel could signal further gains, while a move below support levels may trigger a bearish reversal. Market participants are likely to watch for confirmation of a breakout or reversal in the coming sessions.