EUR/JPY Price Forecast: Trades above 185.00 after rebounding from ascending channel bottom
EUR/JPY gains ground after registering modest losses in the previous day, trading around 185.10 during the early European hours on Thursday. The currency cross holds a capped tone as spot has slipped just under the nine-period and 50-period Exponential Moving Averages (EMAs). The pair is effectively testing this tight resistance cluster, and a failure to decisively reclaim it would keep the near-term bias tilted lower.
The 14-day Relative Strength Index (RSI) around 48 suggests subdued, range-bound momentum rather than a strong directional push. Additionally, the technical analysis of the daily chart suggests the EUR/JPY cross has rebounded from the lower boundary of the ascending channel pattern, signaling a short-term bullish bias.
The EUR/JPY cross is testing the immediate barrier at the 50-day EMA of 185.13, followed by the nine-day EMA at 185.32. A break above these moving averages would reinforce the bullish bias and support the currency cross to explore the region around the all-time high of 187.95, recorded on April 17, followed by the upper boundary of the ascending channel around 188.40.
On the downside, the primary support lies at the lower boundary of the ascending channel around 184.80. A sustained break below the channel would put downward pressure on the EUR/JPY cross to navigate the region around the four-month low of 181.87, recorded on March 16, with further declines targeting the six-month low of 180.81, reached on February 12.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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