EUR/JPY Slumps Near Channel Bottom as Yen Surge Fuels Intervention Speculation

The EUR/JPY currency cross is currently trading around 181.50 after rebounding from the descending channel bottom. The technical analysis of the daily chart indicates a bearish bias, with the pair remaining below the nine- and 50-day Exponential Moving Averages (EMAs).

Despite approaching oversold conditions, the 14-day Relative Strength Index (RSI) is hovering just above 30, hinting at lingering downside pressure. Strategists at Scotiabank highlight that the Yen has mounted a sharp rebound against the Dollar, with the yen up 1.5% vs. the USD.

The immediate support for the EUR/JPY cross lies at the lower boundary of the descending channel around 180.70, while further resistance lies at the upper boundary around 185.80. A break above the channel could support the currency cross to reach the all-time high of 187.95 set on April 17.