EUR/JPY Rebounds Toward Key Resistance as Buyers Defend Channel Support

The EUR/JPY currency pair has rebounded after briefly dipping below its ascending channel support level, now targeting the psychologically significant 186.00 mark.

Buyers stepped in to defend the lower trendline of the ascending channel, which has guided the pair's higher highs and higher lows over recent weeks.

The Relative Strength Index (RSI) has bounced from oversold territory, indicating that selling pressure is fading, while the Moving Average Convergence Divergence (MACD) shows early signs of a bullish crossover.

The rebound in EUR/JPY reflects a combination of factors, including stronger-than-expected economic data from the Eurozone and the Bank of Japan's continued ultra-loose monetary policy stance, which keeps the yen weak.