EUR/JPY Price Forecast: Slips below 178.00 as bearish bias strengthens
EUR/JPY remains subdued for the fourth successive day, trading around 177.70 during Asian hours on Wednesday. Technical analysis of the daily chart shows that the currency cross remains confined within a descending channel pattern.
The EUR/JPY currency pair has slipped below 178.00, reflecting a strengthening bearish bias. Analysts are watching the pair closely as it remains confined within a descending channel pattern on the daily chart. The short-term Exponential Moving Average (EMA) is currently beneath the longer-term EMA, indicating the pair is capped by a layered moving-average ceiling.
Additionally, the 14-day Relative Strength Index (RSI) is flirting with oversold territory at 31.77, suggesting that selling pressure may be slowing instead of reversing decisively. According to analysts at Scotiabank, the Yen is a standout performer among the G10 currencies, having recently benefited from a surge driven by comments from Japan's Vice Minister for International Affairs.
The Bank of Japan (BoJ), Japan's central bank, has transitioned from an ultra-loose monetary policy stance to a more conservative approach, raising concerns about the Yen's value. However, a weaker Yen and rising global energy prices have led to a slight increase in Japanese inflation. Despite challenges, the Yen remains a key focus in G10 trading, with analysts closely monitoring its movements for potential bullish reversals.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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