The currency pair remains above critical moving averages, with technical indicators signaling sustained upward momentum but no overbought conditions yet.
EUR/JPY trades around 187.20 in Asian hours, retreating slightly after two days of gains. The cross maintains a bullish near-term outlook, supported by its position above the nine-day and 50-day Exponential Moving Averages (EMAs). The shorter EMA’s alignment above the longer one reinforces the positive trend.
Technical analysis shows the pair moving within an ascending channel, with the 14-day Relative Strength Index (RSI) at 64.1, below overbought levels. Initial resistance lies at the channel’s upper boundary near 187.60, with a breakout targeting the April 17 all-time high of 187.95. Downside support is anchored at the nine-day EMA of 186.52, followed by a confluence zone near 185.70-185.49.
A decisive break below this support could shift sentiment bearish, potentially driving the pair toward the five-month low of 181.87 or lower to 180.81.