The EUR/JPY exchange rate stayed steady after showing slight gains the day before, hovering around 185.60 during Thursday’s Asian trading session. It seems to maintain a generally positive trend since it’s trading above the moving average. Additionally, the 9-day exponential moving average (EMA) is above the 50-day EMA, which might indicate that bullish momentum is starting to gain traction.
This currency pair is also positioned above the Volume Weighted Average Price (VWAP), and with the 14-day Relative Strength Index (RSI) near 55, it reflects a healthy level of momentum—not too overwhelming, though. It suggests that buyers are still in charge as long as these support levels hold firm.
A closer look at the daily chart shows that EUR/JPY is approaching the upper end of a symmetrical triangle around 185.60. This suggests that a bullish breakout could be around the corner, hinting at buyers actively pushing prices higher and testing breakout limits. A solid close above this line would typically indicate a breakout, which could lead to a significant rally towards the all-time high of 187.95 recorded on April 17th.
If we consider potential downsides, the main support is at the VWAP level of 185.28, followed by the 9-day EMA at 185.13 and the 50-day EMA at 184.99. A decline below these levels could put further pressure on the EUR/JPY pair, potentially testing the lower boundary of the symmetrical triangle around 183.70. Breaking beneath this triangle could reveal further risks, including a four-month low of 181.87 from March 16th and a six-month low of 180.81.
