The currency pair trades above key moving averages, but a rising wedge pattern suggests potential bearish reversal ahead.
EUR/JPY extended its four-day rally, reaching 184.80 in Asian trading on Tuesday. The cross remains above its 50-day and nine-day EMAs, reinforcing near-term bullish sentiment, though momentum appears steady rather than accelerating.
Technical indicators show the pair trading within a rising wedge, a pattern typically signaling a loss of upward momentum and a possible bearish reversal. The 14-day RSI at 52.89 remains neutral with a slight bullish bias, while support levels cluster near 184.52 (50-day EMA) and 184.03 (nine-day EMA).
A break below this support zone could push EUR/JPY toward its August 3 low of 179.37. Conversely, a sustained move above 186.10 may target the April 17 all-time high near 187.95.