EUR/JPY Dives Below 178.00 as Bearish Bias Takes Hold
The EUR/JPY currency cross continues to slide, dropping below 178.00 for the fourth consecutive day as its bearish bias strengthens.
Technical analysis shows that the pair remains confined within a descending channel pattern, reinforcing a persistent bearish outlook.
The EUR/JPY cross is held back by both the nine- and 50-period Exponential Moving Averages (EMAs), with the short-term EMA staying under the longer one while price trades beneath them. This suggests that the pair is capped by a layered moving-average ceiling, even as the 14-day Relative Strength Index (RSI) at 31.77 hints that selling pressure could be slowing rather than reversing decisively.
Analysts at Scotiabank point to Japan's Vice Minister for International Affairs, Atsushi Mimura, who reminded market participants of last week's warnings from both PM Takaichi and FinMin Katayama, underpinning JPY strength on the crosses and contrasting with softer tone seen elsewhere.