EUR/JPY Extends Losses, Faces Key Resistance Near 185.30

The EUR/JPY cross has been extending its losses for two consecutive days, trading at around 185.20 during European hours on Monday.

According to technical analysis, the currency pair is remaining within an ascending channel pattern, indicating a bullish bias.

A rebound above the nine-day Exponential Moving Average (EMA) of 185.30 could strengthen the bullish bias and potentially push the price up towards the all-time high of 187.95 set on April 17, followed by the upper boundary of the ascending channel at 188.90.

However, if the price tests the immediate support at the lower boundary of the ascending channel around 185.10, it could lead to a bearish reversal and potentially push the currency pair down towards its nine-month low of 179.37, recorded on August 3.