EUR/JPY Overview

The EUR/JPY currency pair is holding steady after a slight increase the previous day, hovering around 185.80 during Friday’s Asian trading session. Analyzing the daily chart reveals that this currency cross continues to move within an upwardly sloping channel, which suggests a prevailing bullish sentiment.

This positive outlook for EUR/JPY is indicated by its position above both the nine-period and 50-period Exponential Moving Averages (EMAs). Notably, the short-term EMA lies above the longer one—this is usually a good sign, right? The 14-day Relative Strength Index (RSI) is close to 59, still within a bullish range without indicating overbought levels at this point. This might just imply that there could be continued upward momentum while these supports remain intact.

There’s a possibility that EUR/JPY could target the historical high of 187.95, reached on April 17, with the upper boundary of the rising channel around 188.80 serving as the next potential stop.

On the flip side, it seems EUR/JPY is testing some immediate support near the lower boundary of this upward channel, sitting at around 185.70. If that doesn’t hold, there’s the nine-day EMA at 185.39, followed by the 50-day EMA at 184.81. Should this crucial support zone get breached, it might lead to a bearish reversal—something that could push the currency down toward its nine-month low of 179.37, which was noted on August 3.