EUR/JPY Analysis

On Wednesday, during Asian trading hours, EUR/JPY saw an increase for the second consecutive day, hovering around 186.20. The currency pair remains above both the 9-period and 50-period exponential moving averages (EMAs), which suggests a short-term bullish trend.

Looking at the 14-day relative strength index (RSI) currently at 57.48, it indicates positive momentum without reaching overbought conditions. This could imply potential for further upward movement, as long as the price stays above the nearby EMA band.

From a technical standpoint, the daily chart reveals that EUR/JPY is testing the upper limit of an ascending triangle near 186.20. This hints at strengthening bullish momentum, and a breakout above this level seems feasible. If the price decisively surpasses the triangle’s upper boundary, it might lead to a strong bullish rally, possibly breaking the all-time high of 187.95 established on April 17.

On the downside, significant support is found at the 9-day EMA around 185.66, with further support levels at the 50-day EMA (185.18) and at about 185.10, the lower end of the ascending triangle. If the price slips below this triangle pattern, it would jeopardize the bullish outlook and may expose EUR/JPY to further declines towards the 5-month low of 181.87 and the 7-month low of 180.81 recorded on March 16.