EUR/JPY Currency Update

After a three-day upswing, the EUR/JPY has dipped, hovering around 185.90 during Thursday’s Asian trading session. Despite this recent decline, it still sits comfortably above both the 9-period and 50-period exponential moving averages (EMAs), which maintains a somewhat positive outlook. The 14-day Relative Strength Index (RSI) is near 56, indicating that while momentum is favorable, it’s not excessively so. This suggests that there are still buyers in control of the short-term dynamics.

From a technical analysis perspective, the EUR/JPY is currently situated near the upper edge of an ascending triangle, around 186.10. This clustering at the resistance level indicates that buyers are actively countering selling pressure, which points to a strong bullish sentiment. Although the push upward has become somewhat shallow, remaining at this level suggests that a breakout above this resistance is quite possible.

If there’s a definitive daily close above this upper threshold, it usually signals a robust bullish continuation. This could lead the pair to challenge the previous all-time high of 187.95, which was reached on April 17.

On the downside, key support lies at the 9-day EMA around 185.35, followed closely by the 50-day EMA at 185.05. A further drop could exert selling pressure on the EUR/JPY and test the lower boundary of the ascending triangle, which is near 184.70. Should it break beneath this triangle, the four-month low of 181.87, achieved on March 16, and the six-month low of 180.81 would come into play.