EUR/JPY Price Forecast: Holds ground above 179.00 within oversold territory
EUR/JPY gains ground for the third successive day, trading around 179.10 during Asian hours on Wednesday. Technical analysis of the daily chart shows the currency cross trading within a descending channel, keeping the overall bias bearish.
EUR/JPY maintains position above 179.00 amid oversold market conditions. Technical analysis reveals the cross trading within a descending channel, indicating bearish bias. The EUR/JPY pair remains below both the nine-day and 50-day Exponential Moving Averages (EMAs), suggesting that rallies may encounter resistance. The 14-day Relative Strength Index (RSI) is at 34, implying lingering downside pressure but not yet extreme oversold conditions.
Price may decline towards the primary support at 177.60, the lower boundary of the descending channel. A breach of the channel would bolster the bearish outlook, putting downward pressure as the cross nears its 11-month low of 175.70. Conversely, the EUR/JPY could aim for the nine-day EMA of 179.69 and the 50-day EMA of 183.00. Resistance lies at the upper channel boundary around 185.20, followed by the all-time high of 187.95.
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