The EUR/JPY pair experienced a rise after two days of decline, trading around 184.50 during Asian hours on Friday. It still seems to carry a bearish sentiment in the short term since it’s trading below the session’s volume-weighted average price (VWAP) and a close grouping of exponential moving averages is providing resistance, with the 9-period EMA at 184.64 and the 50-period EMA at 184.91.
A further uptrend might push the EUR/JPY to test the upper boundary of a symmetrical triangle around 185.90. If it breaks out of this triangle, a bullish trend could emerge, potentially leading towards the record high of 187.95 reached on April 17th.
Looking at the 14-day Relative Strength Index (RSI), it’s just below the midpoint at 46.58, indicating that the bullish momentum is fading, which suggests that any rally might find it difficult to sustain itself.
Daily chart analysis shows that the EUR/JPY pair is still within a symmetrical triangle pattern, meaning that both buyers and sellers are ramping up their activity, driving the price into a tighter range. It seems that neither party has taken control yet, leading to a temporary standoff.
On the downside, the initial support aligns with the lower edge of the symmetrical triangle around 183.50. Following that, there’s a four-month low of 181.87 noted on March 16, and then a six-month low at 180.81.
