EUR/JPY Slips Below 179.00 as Bearish Bias Prevails

The EUR/JPY currency cross has slipped below 179.00 for the third consecutive day, trading at around 178.80 during Asian hours on Tuesday. Technical analysis shows that the pair remains confined within a descending channel pattern, reinforcing a bearish outlook.

The near-term tone of the EUR/JPY cross is bearish as spot price holds below both the nine- and 50-period Exponential Moving Averages (EMAs). The alignment of short- and medium-term EMAs above price suggests that upside remains capped for now, while the 14-day Relative Strength Index (RSI) hovers just above oversold territory.

Analysts at Rabobank note a shift in speculative positioning, with JPY net longs decreasing from 120 thousand positions to around 72 thousand. This reduction underscores a loss of conviction among investors toward the Yen, despite policy developments in Japan remaining in focus.