The EUR/JPY currency pair has seen an escalation in its decline for the second consecutive day, trading at approximately 185.70 during Asian trading hours on Friday. It’s still hovering above both the 9-period and 50-period exponential moving averages (EMAs), which suggests a positive outlook in the near term. The 14-day Relative Strength Index (RSI) sits at 55.17, indicating that there is steady bullish momentum without being overly exuberant.
Looking at the daily chart, the EUR/JPY pair is nearing the resistance of an ascending triangle around 186.00. This level acts as a flat ceiling, and coupled with a slight downward move, it reflects strong buying interest. Buyers are persistently soaking up available supply at this resistance, which is building momentum for a possible upward breakout. Typically, a daily close beyond this upper boundary can signal a strong bullish continuation, potentially reaching the all-time high of 187.95 established on April 17.
On the downside, the primary support level is at the 9-day EMA around 185.42, followed closely by the 50-day EMA at 185.09. A further drop could exert downward pressure on the EUR/JPY pair and challenge the lower end of the ascending triangle near 184.80. If the price falls below this triangle, it may reveal a four-month low of 181.87 recorded on March 16, and even a six-month low of 180.81 could come into play.
