EUR/JPY Maintains Bullish Tone Above EMAs, Eyes All-Time High
The EUR/JPY currency cross is maintaining its bullish tone as it trades above both the nine- and 50-period Exponential Moving Averages (EMAs). Despite a modest depreciation on Wednesday, the pair held steady around 185.60 during European hours.
According to technical analysis, the ascending channel pattern suggests an ongoing bullish bias for the EUR/JPY cross. The short-term averages remain stacked above the longer one, indicating persistent upward pressure.
The 14-day Relative Strength Index (RSI) at 57.38 is in positive territory but shy of overbought conditions, hinting at room for additional gains with moderate upside momentum.
Looking ahead, the EUR/JPY cross may rise towards its all-time high of 187.95 set on April 17, followed by the upper boundary of the ascending channel around 188.20.
However, a break below the confluence support zone at 185.19 (nine-day EMA) and 184.72 (50-day EMA) could lead to a bearish reversal, potentially pushing the currency cross down towards its nine-month low of 179.37 recorded on August 3.