EUR/JPY extended its gains for the second consecutive day, trading around 184.90 during Asian hours on Monday, May 27, 2024 [1]. The pair is exhibiting a mild bullish bias, consolidating above both the nine-day and 50-day Exponential Moving Averages (EMAs), which are clustered just below the current price in the mid-184s, reinforcing a nearby demand zone [1]. The 14-day Relative Strength Index (RSI) is close to the 50 line, indicating neutral but stabilizing momentum that could support further gains as long as the pair remains above these trend gauges [1].
Despite the recent upward movement, technical analysis of the daily chart shows that EUR/JPY is still moving sideways within a descending channel pattern, suggesting an ongoing bearish bias [1]. A sustained break above the channel's upper boundary, which lies at 185.10, would be required to confirm a shift in trend [1]. Should the pair advance further, it could target the all-time high of 187.95, recorded on April 17, 2024 [1].
On the downside, immediate support is found at the 50-day EMA of 184.85, followed by the nine-day EMA at 184.79 [1]. A break below these levels would likely put downward pressure on EUR/JPY, with potential targets at the three-month low of 181.87 (March 16) and the five-month low of 180.81 (February 12) [1].
In the broader currency market, the Euro was the strongest against the US Dollar, gaining 0.35% on the day, and showed a 0.07% gain against the Japanese Yen, reflecting the pair's mild bullish momentum [1].
CONCLUSION
EUR/JPY is consolidating near the top of its descending channel, with technical indicators suggesting a cautiously bullish outlook as long as key support levels hold. A break above 185.10 could open the way for further gains, while a move below the EMAs may trigger renewed downside pressure. The market's focus remains on whether the pair can sustain its current momentum and challenge previous highs.