The EUR/JPY currency pair saw its decline extend for the third consecutive day, trading close to 183.60 during the Asian session on Thursday. The 14-day Relative Strength Index (RSI) registered at 47.11, indicating a phase of neutral to weak momentum rather than a strong directional trend.
This currency pair is currently below the 50-day exponential moving average (EMA) yet slightly above the 9-day EMA, signaling a modest bearish outlook in the short term. The difference in these moving averages suggests that medium-term resistance is holding the pair back, while it does have some nearby short-term support.
Immediate support for EUR/JPY is seen at the 9-day EMA of 183.49. A notable drop below this level could potentially enhance the existing bearish sentiment, pushing the pair towards the eight-month low of 179.37 noted on August 3. Should this downward trend persist, the next significant target would be the nine-month low of 175.70.
If there is a rebound, EUR/JPY could aim for main resistance at the 50-day EMA around 184.51. Surpassing this medium-term barrier might indicate a stronger bullish comeback, leading to a retest of the previous all-time high of 187.95 from April 17.
Analysts at Scotiabank pointed out that despite “no comments from Finmin Katayama or Deputy Minister Mimuri,” local media reports suggest possible tensions between U.S. officials and the Japanese government, as the U.S. continues to influence the Bank of Japan’s policies.
