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EUR/JPY Price Forecast: Trades near 181.50 after rebounding from descending channel bottom

  • EUR/JPY could find immediate support at the lower boundary of the channel around 180.70.
  • The 14-day Relative Strength Index above 30 indicates lingering bearish momentum.
  • The currency cross could target the initial barrier at the nine-day EMA of 183.74.

EUR/JPY gains ground after two days of losses, trading around 181.50 during the Asian hours on Friday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.

However, the EUR/JPY cross is maintaining a bearish near-term bias as it remains below the nine- and 50-day Exponential Moving Averages (EMAs). The pair has retreated from recent highs with price now trapped under this clustered dynamic resistance, while the 14-day Relative Strength Index (RSI) is hovering just above 30, hinting at lingering downside pressure despite approaching oversold conditions.

The EUR/JPY cross may test the immediate support at the lower boundary of the descending channel around 180.70. A break below the channel would strengthen the bearish bias and put downward pressure on the cross to navigate the region around the nine-month low of 179.37, recorded on August 3.

On the upside, the EUR/JPY cross could target the initial barrier at the nine-day EMA of 183.74, followed by the 50-day EMA of 184.56. Further resistance lies at the upper boundary of the descending channel around 185.80. A break above the channel could support the currency cross to reach the all-time high of 187.95 set on April 17.

Chart Analysis EUR/JPY

Yen surge fuels talk of BoJ intervention

Strategists at Scotiabank highlight that the Yen has mounted a sharp rebound against the Dollar, noting that “the yen is up a shocking 1.5% vs. the USD, building on Wednesday’s impressive gains that sparked renewed speculation around the possibility of official intervention.” They point out that the latest advance extends the recent bout of Yen strength and is reinforcing market chatter that Japanese authorities may be edging closer to stepping in if currency moves become disorderly.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.00%-0.03%0.20%-0.03%-0.08%-0.29%0.07%
EUR0.00%-0.04%0.20%0.00%-0.10%-0.26%0.07%
GBP0.03%0.04%0.23%0.04%-0.05%-0.23%0.10%
JPY-0.20%-0.20%-0.23%-0.21%-0.30%-0.48%-0.15%
CAD0.03%-0.00%-0.04%0.21%-0.09%-0.28%0.07%
AUD0.08%0.10%0.05%0.30%0.09%-0.18%0.15%
NZD0.29%0.26%0.23%0.48%0.28%0.18%0.33%
CHF-0.07%-0.07%-0.10%0.15%-0.07%-0.15%-0.33%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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