EUR/JPY Price Forecast: Trades around 176.50 above nine-day EMA
EUR/JPY gains ground after recovering recent losses from the previous trading day, hovering around 176.40 during Asian hours on Monday. Based on the technical analysis of the daily chart's descending channel pattern, the currency cross maintains a clear bearish bias.
EUR/JPY price trades near 176.50, positioned above its nine-day Exponential Moving Average (EMA) of 176.33. This gain follows a recovery from the previous day's losses, as noted in Asian trading hours on Monday. The technical analysis of the daily chart suggests a bearish bias due to its descending channel pattern. The EUR/JPY pair is currently trading below the 50-day EMA and shows only slight stabilization, with the 14-day RSI at 42.64, which remains below the neutral 50 line, indicating subdued upside momentum.
The pair may test the support at the nine-day EMA and the 12-month low of 175.07, with further support near the lower boundary of its descending channel around 174.40. A break below the channel could expose the pair to the 15-month low at 169.72. Conversely, an upside break towards the upper boundary near 178.00, followed by the 50-day EMA at 178.79, may signal a bullish reversal, potentially driving the pair towards the all-time high of 187.95, reached on April 17.
Analysts suggest that the ongoing tech sell-off and a possible USD index test at 101.00 will keep the Dollar under pressure in the near term, but strong US economic activity and rising price pressures could support the Fed's hawkish stance, reinforcing the USD.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
