The EUR/JPY currency pair experienced a modest decline during Thursday's Asian trading session, settling around the 185.90 level. This movement followed a three-day streak of appreciation for the cross. Despite this recent dip, the pair's overall technical posture appears to lean towards a constructive bullish bias, as it continues to trade above significant short-term and medium-term Exponential Moving Averages (EMAs).
Retail forex and CFD traders often monitor such price action in conjunction with technical indicators like EMAs to gauge market sentiment and potential trend continuations. A currency pair remaining above its 9-period and 50-period EMAs typically suggests underlying buying interest, even during minor pullbacks. The current price action sees the EUR/JPY pair positioned near the upper boundary of what analysts have identified as an ascending triangle formation, specifically around the 186.00 mark.
Technical Outlook and Key Levels
From a technical perspective, the EUR/JPY's ability to sustain levels above both the 9-period and 50-period EMAs underscores a prevailing upward momentum. The 9-period EMA is currently situated at 185.80, while the 50-period EMA rests at 184.80. Should the pair manage to break decisively above the 186.00 resistance, the next potential hurdle could emerge around the 186.70 level. Further upward movement might then target 187.00, followed by the 187.90 resistance point.
- Resistance 1: 186.00 (Ascending triangle top)
- Resistance 2: 186.70
- Resistance 3: 187.00
- Resistance 4: 187.90
Conversely, if selling pressure intensifies, initial support is anticipated at the 9-period EMA of 185.80. A breach below this could see the pair test the 50-period EMA at 184.80. Sustained weakness might then bring the 184.00 psychological level into focus, potentially extending to the ascending trendline support around 183.60. Further declines could challenge the 183.00 handle, followed by the 182.00 support level.
- Support 1: 185.80 (9-period EMA)
- Support 2: 184.80 (50-period EMA)
- Support 3: 184.00
- Support 4: 183.60 (Ascending trendline)
- Support 5: 183.00
- Support 6: 182.00
In summary, the EUR/JPY pair is undergoing a minor correction after recent gains, yet its position above key moving averages suggests that the underlying bullish trend remains intact for now. Traders will be closely observing whether the pair can overcome immediate resistance or if support levels will be tested.
📰 Based on reporting from: FXStreet →