EUR/JPY Extends Losses, Tests Symmetrical Triangle Bottom

The EUR/JPY currency cross has extended its losses for the second day in a row, trading at around 183.00 during Asian hours on Thursday. According to technical analysis of the daily chart, the pair is still within a symmetrical triangle formation, indicating a consolidation phase.

However, despite being in a consolidation phase, the EUR/JPY cross holds a bearish near-term bias as it remains below both the 9-period and 50-period Exponential Moving Averages (EMAs). The short- and medium-term EMAs now cap the topside, suggesting that rallies are likely to be sold. Additionally, the 14-day Relative Strength Index (RSI) is at 37.31, edging towards oversold territory, which hints that downside momentum may be slowing down rather than reversing.

The immediate support for the EUR/JPY cross lies at the lower boundary of the symmetrical triangle around 182.90. A break below this level could strengthen the bearish bias and push the pair downwards to navigate the region around the 9-month low of 179.37, recorded on August 3.