EUR/JPY Analysis

The EUR/JPY pair has increased for a second consecutive day, trading close to 185.00 during Asian hours on Monday. Currently, this currency pair is positioned above the 9-period and 50-period exponential moving averages (EMAs), which suggests a positive outlook in the near term.

The Volume Weighted Average Price (VWAP) stands at approximately 184.31, indicating solid underlying demand. Additionally, the 14-day Relative Strength Index (RSI) is around 51, signaling a neutral to moderately strong momentum as prices stabilize above essential dynamic support levels.

A look at the daily chart shows that the EUR/JPY pair is contained within a symmetrical triangle pattern. This suggests that both buyers and sellers are becoming more assertive, which is compressing the price into a narrower range. Right now, it seems neither side has gained a clear advantage, leading to a temporary equilibrium.

If the upward momentum continues, it could bolster the EUR/JPY pair, potentially testing the upper limit of the symmetrical triangle near 185.90. A breakout above this triangle would likely trigger a bullish rally, possibly reaching the all-time high of 187.95 set on April 17.

Conversely, the first level of support is found at the 50-day EMA at 184.91, with another level following at the 9-day EMA around 184.71. Should the pair decline further, the lower boundary of the symmetrical triangle is near 183.60, followed by key lower points from the past: the four-month low at 181.87 from March 16 and the six-month low at 180.81.