EUR/JPY Rally Faces Rising Wedge Reversal Risk Amid Bullish Near-Term Tone
The EUR/JPY currency cross is currently trading around 186.60 during Asian hours on Wednesday, maintaining a bullish near-term tone as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs).
According to technical analysis, the alignment of short- and medium-term EMAs below price suggests ongoing upside pressure. The 14-day Relative Strength Index around 60 maintains a bullish bias without yet signaling overbought conditions.
The EUR/JPY cross is within a rising wedge on the daily chart, indicating a strong bearish reversal risk. However, if it breaks above the wedge top at 187.00, it could target the all-time high of 187.95 recorded on April 17.
On the downside, primary support lies at the nine-day EMA of 186.18, followed by the lower boundary of the rising wedge around 185.60 and the 50-day EMA at 185.39. A break below this confluence could put downward pressure on the EUR/JPY cross to navigate the region around the five-month low of 181.87.