- EUR/JPY may retest the upper boundary of the descending channel around 185.70.
- The 14-day Relative Strength Index at 53 signals moderate, unstretched bullish momentum.
- The primary support appears at the nine-day EMA at 185.18.
EUR/JPY halts its five-day winning streak, trading around 185.40 during the Asian hours on Friday. The currency cross is holding a constructive near-term bias as it sits above both the nine- and 50-period Exponential Moving Averages (EMAs). This positioning suggests dip-buying interest remains in place.A sustained break above the descending channel would offer bullish confirmation and support the EUR/JPY cross to explore the region around the all-time high of 187.95, recorded on April 17.
On the downside, the initial support lies at the nine-day EMA at 185.18, followed by the 50-day EMA of 184.94. A break below moving averages would revive the bearish bias and put downward pressure on the EUR/JPY cross to navigate the region around the three-month low of 181.87, recorded on March 16, followed by a five-month low of 180.81, reached on February 12.