The EUR/JPY currency pair experienced a depreciation after three consecutive days of gains, trading around 186.20 during Asian hours on Wednesday [1]. Despite this pullback, the cross maintains a constructive bullish bias, as it remains above both the nine-day and 50-day Exponential Moving Averages (EMAs), indicating that the recent upward movement is supported by underlying demand [1].
Technical indicators reinforce the positive outlook: the 14-day Relative Strength Index (RSI) is near 60, suggesting firm but not overextended upside momentum, and the daily chart analysis shows EUR/JPY is trading within an ascending channel pattern [1]. The pair may potentially rebound toward the 186.50 level and could explore the region around the all-time high of 187.95, recorded on April 17, with the upper boundary of the ascending channel at 188.30 serving as a further target [1].
On the downside, primary support is identified at the nine-day EMA of 185.66, followed by the 50-day EMA at 185.18. A break below these levels could trigger a bearish shift, exposing the lower boundary of the ascending channel near 184.70. Further declines might lead the pair to test the nearly four-month low of 181.87 (March 16) and the six-month low of 180.81 (February 12) [1].
In terms of broader euro performance, the euro was the weakest against the Swiss franc, declining by 0.10% on the day, and fell 0.06% against the Japanese yen [1]. No specific market reactions or analyst opinions were provided in the article.
CONCLUSION
EUR/JPY remains technically bullish despite a short-term pullback, with key support and resistance levels clearly defined. The pair could rebound toward 186.50 and potentially retest recent highs if the bullish momentum persists. However, a break below support levels may signal a shift in trend.