EUR/JPY Price Forecast: Tests nine-day EMA barrier after rebounding above 179.00
EUR/JPY halts its four-day losing streak, trading around 179.20 during Asian hours on Thursday. Technical analysis of the daily chart shows that the currency cross remains confined within a descending channel pattern. This continuous formation reinforces a persistent bearish outlook for the pair.
The EUR/JPY currency pair continues to struggle, trading around 179.20 following a four-day decline on Thursday. Technical analysis indicates that the pair is trapped within a descending channel pattern, supporting a bearish outlook for the short term. Both the nine-day and 50-day Exponential Moving Averages (EMAs) are below the current price, suggesting that rallies are likely to be limited.
Meanwhile, the 14-day Relative Strength Index (RSI) is at 40.46, indicating neutral-to-soft momentum, but not an outright oversold condition. The EUR/JPY pair may descend towards the lower boundary of the channel at 176.80, eventually reaching an 11-month low of 175.70, hit in November 2025. Conversely, the pair is testing the nine-day EMA at 179.22, and a successful break above this average could prompt a bullish reversal.
Should that occur, the pair would then face the 50-day EMA at 181.74. Resistance levels include the upper boundary of the descending channel around 184.40, followed by the all-time high of 187.95, set on April 17. Experts at MUFG/BTMU consider the Bank of Japan's (BoJ) guidance on interest rate tightening, as provided by former BoJ official Kazuo Momma, to align with their own expectations.
The BoJ anticipates a policy tightening "once every three months," which aligns with their forecast for another rate hike before the end of the year during the December policy meeting.
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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