EUR/JPY Trapped in Descending Channel as Yen Surges Amid Intervention Speculation

The EUR/JPY exchange rate has been trading near 181.50 after rebounding from its descending channel bottom, according to FXStreet.

Despite the recent bounce, technical analysis suggests that the currency cross remains within a bearish bias due to its position below both the nine- and 50-day Exponential Moving Averages (EMAs).

The EUR/JPY pair has retreated from recent highs with price now trapped under dynamic resistance, while the Relative Strength Index (RSI) is hovering just above 30, hinting at lingering downside pressure.

Scotiabank strategists highlight that the Yen's sharp rebound against the Dollar has sparked renewed speculation around the possibility of official intervention by Japanese authorities.