The currency pair trades near 183.80 with bearish momentum confirmed by technical indicators and moving average resistance.
EUR/JPY remains under pressure, trading around 183.80 in Asian hours after modest gains the prior day. The Relative Strength Index at 47.63 signals bearish momentum, staying below the neutral 50 level without reaching oversold conditions.
The cross sits below its 50-day Exponential Moving Average (EMA) and just above the nine-day EMA, indicating vulnerability to further declines. Initial support is at 183.34, with a break below targeting the August 3 eight-month low of 179.37. Resistance lies at the 50-day EMA of 184.57.
Market expectations of Bank of Japan tightening have firmed, with a 50% chance of a 25-basis-point hike in September priced in, adding to downward pressure on the pair.