The currency pair holds above key EMAs with RSI at 60, signaling potential exhaustion near multi-month highs.
EUR/JPY climbed for a fourth straight session, trading near 186.50 in Asian hours Friday, supported by bullish momentum above the nine- and 50-period EMAs. The 14-day RSI at 60 indicates upside potential without overbought conditions, though technicals suggest a rising wedge pattern may signal exhaustion.
The daily chart shows the pair transitioning from an ascending triangle to a rising wedge, typically a precursor to a bearish reversal. Resistance is eyed at 186.80, with a breakout targeting the April 17 all-time high of 187.95. Support levels include the nine-day EMA at 185.94 and the 50-day EMA at 185.26, aligning with the wedge’s lower boundary.
A drop below the wedge could pressure EUR/JPY toward the March 16 five-month low of 181.87 or the seven-month low of 180.81.