The EUR/JPY currency pair extended its gains for the third consecutive day, trading around 185.20 during Asian hours on Monday, and is currently testing the nine-day Exponential Moving Average (EMA) barrier at 185.22 after rebounding above the 185.00 level [1]. The pair maintains a mild bullish bias, as it remains above the 50-day EMA (185.12), though immediate upside is capped by the nine-day EMA [1]. Technical analysis indicates that EUR/JPY is consolidating within an ascending channel pattern, with the 14-day Relative Strength Index (RSI) at 49.6, suggesting neutral, range-bound conditions [1].
A break above the nine-day EMA could reinforce the bullish outlook, potentially opening the way for EUR/JPY to retest the all-time high of 187.95, recorded on April 17, and the upper boundary of the ascending channel near 188.60 [1]. On the downside, the primary support is at the 50-day EMA (185.12), with further declines targeting the lower boundary of the ascending channel around 184.50. A decisive move below this channel could expose the pair to the four-month low of 181.87 (March 16) and the six-month low of 180.81 (February 12) [1].
In terms of broader currency performance, the Euro was the strongest against the Japanese Yen among major currencies today, with a 0.09% gain versus JPY [1]. The heat map of major currencies further supports the Euro's relative strength against the Yen in today's session [1].
No explicit forward-looking statements or analyst opinions were provided in the article, but the technical setup suggests that a sustained break above resistance could drive further gains, while a failure to hold above support levels may trigger a deeper pullback [1].
CONCLUSION
EUR/JPY continues its upward momentum, testing a key technical resistance level above 185.00 and showing relative strength against the Japanese Yen. The market remains cautiously bullish, with further upside possible if resistance is breached, but downside risks persist if support levels fail to hold.