EUR/JPY Rebounds but Bearish Bias Remains

The EUR/JPY currency cross rebounded from its descending channel bottom and is currently trading near 178.50.

According to technical analysis, the cross remains within the descending channel pattern, indicating a bearish bias.

The 14-day Relative Strength Index (RSI) at 26.98 sits in oversold territory, suggesting that while downside pressure dominates, the sell-off could start to lose momentum if buyers attempt to defend nearby structural levels.

Analysts at Scotiabank highlight that Japanese officials have firmly resisted recent US attempts to steer Japan's macro policy stance, which reinforces the authorities' resolve and adds to the backdrop of 'persistent hawkish rhetoric' that has supported the Yen into next week's BoJ meeting.