The currency pair trades above key EMAs but faces bearish pressure within a rising wedge pattern, raising reversal concerns.
EUR/JPY maintains gains around 186.50 in Asian trading, supported by bullish momentum above the nine- and 50-period EMAs. The 14-day RSI at 60 indicates firm upside control, though not overbought.
Technical analysis shows the pair moving within a rising wedge, a pattern often signaling a bearish reversal. Resistance lies near 186.90, with potential to test the April 17 high of 187.95. Support is seen at 186.04 and 185.31, aligning with the wedge’s lower boundary.
A break below the wedge could push the cross toward March’s five-month low of 181.87 or the seven-month low of 180.81.