EUR/JPY Slumps Below 178.50 Amid Bearish Bias

The EUR/JPY currency pair continues to decline for the second consecutive day, currently trading around 178.40 during the Asian hours on Tuesday.

Technical analysis of the daily chart indicates that the EUR/JPY remains within a descending channel pattern, signaling a bearish bias. The pair's recent price action has also seen it extend its pullback from highs, with the Relative Strength Index (RSI) at 23.09 sitting in oversold territory.

The EUR/JPY is positioned above the newly formed support level at the lower boundary of the descending channel around 177.70. However, a break below this level would strengthen the bearish bias and put downward pressure on the cross as it navigates the region around the 10-month low of 175.70, recorded in November 2025.

A rebound towards the nine-day EMA of 182.00 is possible, followed by resistance at the upper boundary of the descending channel around 185.70 and the all-time high of 187.95 set on April 17.