EUR/JPY Price Forecast: Slips below 178.50 within oversold territory
EUR/JPY loses ground for the second consecutive day, trading around 178.40 during the Asian hours on Tuesday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.
EUR/JPY has slipped below 178.50, trading in oversold territory, according to technical analysis. The cross is now within a descending channel pattern, indicating a bearish outlook. EUR/JPY remains below both the nine- and 50-period Exponential Moving Averages (EMAs), which further supports a bearish sentiment. The Relative Strength Index (RSI) stands at 23.09, suggesting that despite the ongoing downward momentum, sellers continue to dominate.
The currency pair is positioned just above the newly formed support level at approximately 177.70. A breach of the channel would intensify the bearish bias, potentially driving the cross towards its 10-month low of 175.70, observed in November 2025. Conversely, if EUR/JPY rebounds towards the nine-day EMA of 182.00 and then the 50-day EMA of 184.13, upward momentum could unfold.
Key resistance levels include the upper boundary of the descending channel at 185.70, followed by the all-time high of 187.95 reached on April 17.
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