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08/09/25
114
EUR/JPY Retreats but Bullish Momentum Persists
The EUR/JPY currency pair experienced a retreat on Monday after reaching a high of 173.91, marking its highest level since July 2024. Despite this setback, the overall bullish sentiment remains intact, supported by technical indicators that suggest upward momentum could continue.
The pair opened higher following a gap up but soon moved lower, trading around 173.10 during European trading hours. The daily chart analysis indicates a persistent upward trend, with the EUR/JPY trading within an ascending channel pattern. The 14-day Relative Strength Index (RSI) remains comfortably above the neutral 50 level, reinforcing the bullish bias. In addition, short-term price momentum is robust, as evidenced by the cross trading above the nine-day Exponential Moving Average (EMA).
Looking ahead, resistance may be encountered at the 173.91 level — the highest point since July 2024 — reached on September 8. A move beyond this level could open the door to further gains, potentially targeting the upper boundary of the ascending channel around 174.10. Surpassing this resistance might strengthen the bullish outlook, setting sights on the recent all-time high of 175.43, registered in July 2024.
Support levels are anticipated around the psychological threshold of 173.00, followed by the nine-day EMA at approximately 172.58. A decline below this area could weaken the current momentum, possibly leading the pair to test the lower boundary of the ascending channel near 171.70. Additional support is seen at the 50-day EMA around 171.14.
A move below the confluence support zone may signal a shift lower, risking further declines toward the 10-week low of 169.72, last recorded at the end of July. Overall, the technical landscape suggests that while near-term corrections are possible, the underlying bullish trend remains dominant.
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