EUR/JPY Extends Losses Despite Bullish Bias

The EUR/JPY currency cross has extended its losses for the second day in a row, trading around 185.20 during European hours on Monday.

According to technical analysis, the cross is maintaining a mildly bullish near-term bias as it holds above the 50-day Exponential Moving Average (EMA) while being marginally capped by the nine-day EMA.

The 14-day Relative Strength Index (RSI) at 53.17 leans slightly to the bullish side without reaching overbought territory, suggesting a constructive but not overstretched upside tone as long as price continues to respect underlying trend support.

Should the EUR/JPY cross test the immediate barrier at the nine-day EMA of 185.30 and rebound above it, this would strengthen the bullish bias and support the currency cross to target the all-time high of 187.95 set on April 17, followed by the upper boundary of the ascending channel around 188.90.

However, a break below the confluence support zone at the lower boundary of the ascending channel at 185.10 and the 50-day EMA at 184.81 may cause a bearish reversal, potentially pressing the currency cross down toward its nine-month low of 179.37, recorded on August 3.