EUR/JPY Price Forecast: Trades near 180.50 after breaking above nine-day EMA

EUR/JPY has continued its upward trend for two days straight, reaching around 180.40 during European trading hours on Monday. Technical analysis of the daily chart indicates a bearish outlook for the currency pair, as it remains below the 50-day Exponential Moving Average (EMA) and maintains proximity to the nine-day EMA. This setup suggests that the pair is consolidating within a descending channel, with medium-term trend resistance present.

The 14-day Relative Strength Index (RSI) stands at 43.32, indicating relatively weak momentum and limiting the potential for an immediate bullish reversal unless the currency pair can regain the 50-day EMA. EUR/JPY may experience a pullback, testing the nine-day EMA at 179.83. A break below this short-term average could reinforce the bearish bias, pushing the currency pair lower towards 177.40, and eventually approaching the 11-month low of 175.70.

Conversely, if the EUR/JPY crosses rises, it could target the 50-day EMA at 182.65. The primary resistance lies at the upper end of the descending channel around 185.00, followed by the all-time high of 187.95 set on April 17.