The EUR/JPY currency pair extended its losses for a second consecutive day, trading around 185.70 during Asian hours on Friday, while remaining below the ascending triangle resistance near 186.00 [1]. Despite the recent pullback, the cross is holding above both the nine-period and 50-period Exponential Moving Averages (EMAs), which reinforces a constructive near-term bias [1]. The 14-day Relative Strength Index (RSI) stands at 55.17, indicating steady bullish momentum rather than an overstretched rally [1].
Technical analysis of the daily chart shows that the EUR/JPY is pressing against the flat ceiling of the ascending triangle at 186.00, with shallower dips suggesting aggressive buying pressure [1]. Bulls are consistently absorbing supply at this level, and momentum is building for a potential upside breakout. A decisive daily close above this resistance could trigger a strong bullish continuation, potentially exposing the all-time high of 187.95, which was recorded on April 17 [1].
On the downside, primary support is identified at the nine-day EMA of 185.42, followed by the 50-day EMA at 185.09. Further declines could see the pair test the ascending triangle’s lower boundary around 184.80, with a break below this level exposing the four-month low of 181.87 (March 16) and the six-month low of 180.81 [1].
In terms of broader currency performance, the Euro was the weakest against the Canadian Dollar among major currencies today, with a percentage change of 0.13% against the CAD [1]. The EUR/JPY pair itself saw a -0.09% change, reflecting the recent softness in the Euro relative to the Yen [1].
CONCLUSION
EUR/JPY remains in a consolidation phase just below key resistance, with technical indicators pointing to building bullish momentum and the potential for an upside breakout. However, the pair faces immediate support levels and recent softness in the Euro. Market participants are closely watching for a decisive move above 186.00, which could set the stage for a retest of the all-time high.