EUR/JPY remained relatively stable following modest gains in the previous session, trading near 186.60 during Wednesday’s Asian trading hours. The currency pair maintains a bullish short-term outlook, holding above both its 9-period and 50-period Exponential Moving Averages (EMAs). The alignment of these short- and medium-term EMAs below the current price suggests sustained upward pressure.
While the 14-day Relative Strength Index (RSI) sits near 60—indicating a constructive bias without being overbought—the daily technical chart reveals that EUR/JPY is trading within a rising wedge pattern. This structure introduces a significant risk of a bearish reversal.
Looking ahead, the pair may test immediate resistance at the upper boundary of the rising wedge near 187.00. A decisive breakout above this level could propel the cross toward its all-time high of 187.95, established on April 17.
On the downside, key support is located at the 9-day EMA at 186.18, followed by the lower boundary of the rising wedge near 185.60 and the 50-day EMA at 185.39. A breach of this support confluence could trigger a bearish trend, potentially driving the pair toward the five-month low of 181.87 (March 16) or the seven-month low of 180.81.
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