EUR/JPY Price Forecast: Remains below 177.00 as bearish bias prevails
EUR/JPY loses ground for the second successive day, trading around 176.90 during Asian hours on Tuesday. Technical analysis of the daily chart shows the currency cross remains within a descending channel pattern, suggesting an ongoing bearish bias.
EUR/JPY maintains a bearish trend, currently trading just below 177.00 as technical indicators suggest ongoing negative momentum. The currency pair remains within a descending channel pattern, reflecting bearish bias. Both the 9- and 50-day Exponential Moving Averages (EMAs) keep EUR/JPY under pressure, while the 14-day Relative Strength Index (RSI) sits at 32.75, just above oversold territory.
The pair is experiencing a retreat after failing to sustain earlier gains, with key technical support levels at 176.00 and a potential target of 175.70 if further decline occurs. Should the pair drop below these key levels, further declines towards a 14-month low of 169.72 could be imminent. Meanwhile, the immediate resistance lies at the 9-day EMA of 177.44, with a potential bullish reversal leading to an approach of the 50-day EMA at 180.47.
This could pave the way for the pair to reach the upper boundary of the descending channel near 183.90, with the all-time high of 187.95 serving as the ultimate target.
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