EUR/JPY Price Forecast: Hovers around 185.50 near nine-day EMA support

EUR/JPY prices settle near 185.50, near the nine-day EMA support, during Tuesday's Asian trading session. A daily chart reveals the cross is near the lower edge of an ascending channel, signaling a decisive moment. This presents traders with an enticing, low-risk entry opportunity. However, if the price persists near the bottom line without a swift rebound, it may indicate underlying weakness.

The EUR/JPY cross maintains a bullish outlook as it stays above both the nine- and 50-period EMAs. The short-term EMA remains above the longer one, hinting at a sustained uptrend. The 14-day RSI at 55.9 indicates positive momentum, without signaling overbought conditions. EUR/JPY could surge towards its all-time high of 187.95, followed by the upper channel boundary at 189.30.

Conversely, it tests immediate support at the nine-day EMA of 185.40, and further at the 50-day EMA at 184.86. A drop below the medium-term average could trigger a bearish reversal, pushing the EUR/JPY cross down to the 179.37 low, recorded on August 3. Scotiabank strategists emphasize the upcoming BoJ decision on September 18, as well as potential signals from both domestic and international policymakers.