EUR/JPY Streaks to Near-185.00 Amid Rising Wedge Formation

The EUR/JPY currency cross has been on a winning streak for four consecutive days, trading at around 184.80 during the Asian hours on Tuesday.

According to technical analysis of the daily chart, the spot is within a rising wedge formation, which typically signals an upward trend losing momentum and acting as a bearish reversal.

However, the EUR/JPY cross remains above both the 50-period and nine-period Exponential Moving Averages (EMAs), keeping the near-term bias constructive. The clustering of price just over these short- and medium-term EMAs suggests ongoing demand on dips, while the 14-day Relative Strength Index (RSI) around 52.89 stays in neutral territory with a mild bullish tilt.

A decisive break below the confluence support zone, including the 50-day EMA at 184.52, the lower boundary of the rising wedge around 184.60, and the nine-day EMA of 184.03, would revive the bearish bias and potentially push the currency cross down toward its eight-month low of 179.37 recorded on August 3.

On the upside, a sustained break above the upper boundary of the rising wedge around 186.10 could signal a broader bullish resurgence, opening the path for the currency cross to retest the area surrounding its all-time peak of 187.95 set on April 17.