EUR/JPY Price Forecast: Tests rising wedge bottom near 184.00
EUR/JPY depreciates after two days of gains, trading around 184.20 during the Asian hours on Monday.
The EUR/JPY currency pair has experienced a decline after two days of gains, currently trading around 184.20 on Monday's Asian session. Technical analysis on a daily chart shows the pair is within a rising wedge, suggesting the upward trend may be losing strength and a potential bearish reversal. The EUR/JPY cross remains optimistic in the short term as it stays above the nine-period Exponential Moving Average (EMA), providing support despite the pullback from the recent highs.
The 14-day Relative Strength Index (RSI) is around 50, indicating neutral momentum following the previous correction, implying that directional conviction is still uncertain while the overall uptrend structure remains intact. EUR/JPY is testing the immediate support at the lower boundary of the rising wedge near 184.10, followed by the nine-day EMA at 183.78.
A break below this support zone could strengthen the bearish trend, possibly driving the pair down towards its eight-month low of 179.37, set on August 3. If the downward momentum persists, the next significant technical target would be the nine-month low of 175.70. On the upside, the primary resistance is the nine-day EMA near 184.49, followed by the upper boundary of the rising wedge at 185.80.
A successful break above the wedge could indicate a broader bullish trend, potentially allowing the pair to test the region around its all-time high of 187.95, achieved on April 17.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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