The currency pair tests key support near 184.10 after two days of gains, with technical indicators pointing to potential bearish reversal.
EUR/JPY retreated to 184.20 in early Asian trading Monday, reversing two sessions of gains as a rising wedge pattern suggests weakening upward momentum. The cross remains above its nine-day Exponential Moving Average (EMA), but the 14-day Relative Strength Index (RSI) near 50 indicates neutral momentum after last week’s pullback from highs.
The pair now tests immediate support at the wedge’s lower boundary around 184.10, with further downside risks toward the nine-day EMA at 183.78. A break below this zone could target the August 3 eight-month low of 179.37, with the nine-month low of 175.70 as the next key level. Resistance lies at the 50-day EMA near 184.49 and the wedge’s upper boundary around 185.80.
Technical structure remains intact, but directional conviction is tentative as the wedge pattern typically signals a bearish reversal if support fails.