EUR/JPY Market Update

During Asian trading on Thursday, EUR/JPY managed to recover some of its earlier losses, hovering around 183.80. However, it still remains in the red. The pair is currently experiencing a correction that falls below both short-term and medium-term trend indicators, with the 9-day exponential moving average (EMA) at 184.47 and the 50-day EMA at 184.95 acting as resistance. This situation reinforces a short-term bearish outlook.

The currency pair has struggled to maintain its position near recent highs, slipping below its moving average. The 14-day Relative Strength Index (RSI) is nearing the oversold zone at 36.96, implying that downward momentum is lessening, although it hasn’t fully run its course yet.

EUR/JPY also finds itself within a symmetrical triangle pattern, indicating that a breakout could be nearing as market indecision and momentum grow.

Currently, prices are trading just above the volume weighted average price (VWAP) of 183.69, hinting at a slight bullish shift for this trading session. This indicates that buyers are willing to pay more than the average price that has been established throughout the day.

In this context, trading above the average volume weight suggests that bullish operators are attempting to push prices toward the triangle’s upper boundary, aiming for a potential breakout.

Initial support is identified near the lower limit of the symmetrical triangle around 183.40. A further decline might expose last seen four-month low of 181.87 recorded on March 16, followed by a six-month low at 180.81.

On the upside, a move above the 9-day EMA at 184.47 could signal easing pressure, but bulls will likely need a daily close exceeding the 50-day EMA at 184.95 to challenge the critical resistance zone around the all-time high of 187.95.