Key Moments
- EUR/JPY trades around 186.50 in Asian hours, staying above both the nine-period and 50-period EMAs.
- Price action unfolds within a rising wedge, with initial resistance seen near 186.90 and a strong bearish reversal risk.
- Key downside levels include support at the nine-day EMA of 186.04 and the 50-day EMA at 185.31, with deeper targets at 181.87 and 180.81.
EUR/JPY Maintains Bullish Tone Above Key Moving Averages
EUR/JPY is recovering after modest losses in the prior session, trading close to 186.50 during Asian hours on Monday. The cross is preserving a short-term bullish bias, supported by price holding above both the nine-period and 50-period Exponential Moving Averages (EMAs). The shorter-term EMA positioned above the longer-term EMA is reinforcing a constructive technical backdrop for now.
Momentum indicators are also supportive. The 14-day Relative Strength Index (RSI) is hovering near 60, signaling solid upward momentum without yet signaling overbought conditions. This setup suggests that buyers remain in control as long as the pair stays above nearby moving averages.
Rising Wedge Flags Potential Reversal Risk
Despite the positive near-term structure, the daily chart shows EUR/JPY advancing within a rising wedge formation, which is typically associated with increased risk of a bearish reversal. This pattern highlights the importance of how price behaves around nearby resistance and support levels.
On the upside, initial resistance is seen at the upper boundary of the rising wedge, around 186.90. If buyers manage to push through this barrier, the cross could be poised to retest the area near the all-time high at 187.95, last reached on April 17.
Critical Support Levels and Downside Targets
On the downside, first support is located at the nine-day EMA at 186.04. Below that, the 50-day EMA at 185.31 aligns with the lower boundary of the rising wedge, making this zone a key area for trend validation. A decisive break beneath the wedge would likely increase downside pressure on EUR/JPY.
If such a breakdown occurs, price could be drawn toward the five-month low at 181.87, recorded on March 16, and further toward the seven-month low at 180.81. These levels mark important reference points for traders monitoring a potential shift from the current bullish bias to a more pronounced corrective phase.
Euro Performance Against Major Currencies
The table below presents the percentage change of the Euro (EUR) against major currencies today. According to this snapshot, the Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.19% | -0.16% | -0.07% | -0.25% | -0.19% | -0.37% | |
| EUR | 0.30% | 0.08% | 0.11% | 0.22% | 0.03% | 0.13% | -0.09% | |
| GBP | 0.19% | -0.08% | 0.04% | 0.14% | -0.02% | 0.02% | -0.16% | |
| JPY | 0.16% | -0.11% | -0.04% | 0.06% | -0.09% | -0.04% | -0.20% | |
| CAD | 0.07% | -0.22% | -0.14% | -0.06% | -0.16% | -0.11% | -0.32% | |
| AUD | 0.25% | -0.03% | 0.02% | 0.09% | 0.16% | 0.10% | -0.14% | |
| NZD | 0.19% | -0.13% | -0.02% | 0.04% | 0.11% | -0.10% | -0.22% | |
| CHF | 0.37% | 0.09% | 0.16% | 0.20% | 0.32% | 0.14% | 0.22% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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