EUR/JPY Price Forecast: Slips below 179.00 as bearish bias prevails

EUR/JPY slid below 179.00 on Thursday, as a bearish bias dominated the market. The currency pair, which had gained for three consecutive days, was now trading around 178.90 during Asian hours. Technical analysis indicates that EUR/JPY is within a descending channel, reinforcing the overall negative trend. The pair is currently trading below both the nine- and 50-period Exponential Moving Averages (EMAs), suggesting that rallies are being hindered.

The 14-day Relative Strength Index (RSI) sits at approximately 32, indicating lingering downside pressure, although the pair remains just above oversold territory. EUR/JPY may descend towards the primary support level at 177.40, potentially reaching a nearly 11-month low of 175.70, previously observed in November 2025. Conversely, the pair could aim for the nine-day EMA at 179.53, followed by the 50-day EMA at 182.84.

The upper boundary of the descending channel, around 185.10, and the all-time high of 187.95 set on April 17 could also present key resistance levels. Analysts at Scotiabank note that overnight Euro volatility has increased ahead of the FOMC, with "overnight EUR vol has firmed moderately, implying a breakeven move in spot of about 50 pips." This suggests that markets may have largely priced in a hawkish Fed outcome.