EUR/JPY Price Forecast: Tests 180.00 support near nine-day EMA

EUR/JPY experienced another day of losses, trading near 180.10 during Asian hours on Wednesday. The daily chart indicates a descending channel pattern, pointing to a bearish trend. The EUR/JPY pair maintains a mild bearish outlook, sitting just above the nine-day Exponential Moving Average (EMA) at 179.95, but constrained by the 50-day EMA.

The pair's failure to regain the 50-day EMA suggests limited upside potential, while the 14-day Relative Strength Index (RSI) at 41.70 indicates weak buying pressure. The EUR/JPY cross encounters immediate support at the psychological level of 180.00, which aligns with the nine-day EMA. A breakdown below this support could intensify the bearish bias, pushing the currency pair towards the lower edge of the descending channel around 177.30, potentially reaching a low not seen in nearly 11 months at around 175.70 (recorded in November 2025).

Conversely, a move towards the 50-day EMA of 182.46 could provide bullish support. The upper boundary of the descending channel is around 184.80, followed by the all-time high of 187.95 from April 17. MUFG analysts suggest that the Bank of Japan's latest policy shift signifies the start of a "new phase" in monetary policy, with expectations of more frequent rate hikes every three months.

This more regular tightening pace is emerging despite external factors such as higher US yields and rising energy prices putting downward pressure on the Yen, indicating that the Bank of Japan's policy stance will likely become less accommodative in the coming quarters.