- EUR/JPY could encounter strong resistance near 164.50 at the upper boundary of its ascending channel.
- The 14-day Relative Strength Index remains above 50, reinforcing a bullish outlook.
- The first level of support is around the nine-day EMA at 161.57.
EUR/JPY halts its three-day winning streak, hovering around 162.60 in early European trading on Wednesday. Technical analysis of the chart daily indicates an ongoing uptrend within an ascending channel, signaling a bullish outlook.
The 14-day Relative Strength Index (RSI) remains above 50, reinforcing positive momentum. Additionally, the currency pair continues to trade above the nine- and 50-day Exponential Moving Averages (EMAs), supporting further gains.
On the upside, the first key resistance is near 164.50 at the upper boundary of the ascending channel, followed by the four-month high of 164.90 from December 30. A breakout beyond this level could strengthen the bullish trend, potentially leading to a test of the eight-month high at 166.69.
Conversely, initial support is at the nine-day EMA of 161.57, with a drop below this level potentially weakening short-term momentum. Further declines could bring the pair toward the 50-day EMA at 160.13 and the lower boundary of the ascending channel at 159.30. A break below this zone may intensify bearish pressure, driving EUR/JPY toward its March low of 155.59 and possibly 154.41, the lowest level since December 2023.
EUR/JPY: Daily Chart
