The EUR/JPY pair has retraced some of its recent gains, currently trading near 180.10 during the Asian session on Friday. A closer look at the daily chart indicates that the currency pair remains within a downward channel, signaling a continued bearish sentiment.
In the near term, the EUR/JPY maintains a bearish outlook as it trades below the 50-day Exponential Moving Average (EMA). Prices are hovering right at the nine-day EMA, which acts as a short-term pivot point. Additionally, the 14-day Relative Strength Index (RSI) is at 42.47, still below the neutral 50 level, suggesting ongoing downward pressure rather than any solid recovery.
The pair is testing immediate support at the nine-day EMA level of 180.12. If it breaks below this short-term average successfully, it would strengthen the bearish trend and potentially drive the currency pair toward the lower boundary of the descending channel at 177.00. Beyond that, there’s an 11-month low of 175.70 that was seen in November 2025.
On the other hand, should there be a rebound that lifts the price above the nine-day EMA, it might lead to a bullish reversal, allowing the currency pair to challenge the 50-day EMA at 182.31. Further resistance lies near the upper limit of the descending channel around 184.80, and an all-time high at 187.95, which was recorded on April 17.
