Key Moments
- EUR/JPY trades around 178.80 in Asian hours, extending a three-day run of subdued price action within a descending channel.
- The 14-day RSI stands at 35.96, indicating persistent but moderating selling pressure as the cross holds below its nine- and 50-day EMAs.
- Key technical levels include downside targets at 176.90 and 175.70, and upside resistance at 179.55, 182.01, and 184.50.
Bearish Structure Dominates EUR/JPY Price Action
EUR/JPY remains under pressure for a third consecutive session, changing hands near 178.80 during Asian trading on Tuesday. On the daily chart, the pair continues to trade inside a clearly defined descending channel, reinforcing a sustained bearish technical bias.
The cross is maintaining a negative short-term stance as spot prices stay below both the nine-day and 50-day Exponential Moving Averages (EMAs). With these short- and medium-term EMAs positioned above current levels, the technical setup signals that upside attempts are likely to face resistance.
The 14-day Relative Strength Index (RSI) prints at 35.96, sitting just above oversold territory. This reading points to ongoing selling dominance, although it also suggests that the intensity of the downside momentum may be starting to ease.
Key Technical Levels and Scenario Map
Within the existing descending channel, traders are monitoring a cluster of downside and upside markers that frame the near-term risk balance for the cross.
| Direction | Level | Description |
|---|---|---|
| Downside | 176.90 | Lower boundary of the current descending channel |
| Downside | 175.70 | 11-month low reached in November 2025 |
| Upside | 179.55 | Nine-day EMA – initial resistance and pivot for potential reversal |
| Upside | 182.01 | 50-day EMA, next resistance if price clears the nine-day EMA |
| Upside | 184.50 | Upper boundary of the descending channel |
| Upside | 187.95 | All-time high posted on April 17 |
On the downside, the pair may gravitate toward the channel floor near 176.90. A break of that area could open the way for a move toward the 11-month low at 175.70, which was registered in November 2025.
On the topside, the first technical hurdle is located at the nine-day EMA at 179.55. A sustained move above this short-term average could signal the start of a bullish reversal phase, potentially allowing the cross to challenge the 50-day EMA at 182.01. Above that, additional resistance is seen at the upper boundary of the descending channel around 184.50, before the all-time high at 187.95, set on April 17, comes into view.
Speculative Yen Positioning Shows Reduced Conviction
Positioning data underline softening enthusiasm for the Japanese Yen. Analysts at Rabobank highlight a notable shift in speculative positioning, observing that JPY net longs have decreased from 120 thousand positions to around 72 thousand.
This substantial reduction in net long exposure reflects a significant decline in investor conviction toward the Yen, even as market participants continue to watch policy developments in Japan.
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