• EUR/JPY could fall toward the nine-day EMA of 177.40.
• The 14-day Relative Strength Index near 41 reflects subdued buying momentum.
• The initial barrier lies at the 50-day EMA of 180.01.

EUR/JPY appreciates after opening at a bearish gap, remaining in negative territory and trading around 177.50 during Asian hours on Monday. Technical analysis of the daily chart shows the currency cross remains within a descending channel pattern, suggesting an ongoing bearish bias.

The EUR/JPY cross is maintaining a capped tone as it holds below the 50-day Exponential Moving Average (EMA). The pair is attempting to stabilize just above the nine-day EMA, suggesting short-term consolidation within a broader corrective phase, while the 14-day Relative Strength Index (RSI) around 41 hints at subdued momentum rather than a decisive recovery.

The EUR/JPY cross could test the immediate support at the nine-day EMA of 177.40, followed by the lower boundary of its descending channel around the 11-month low of 175.70, which was recorded in November 2025. If selling pressure intensifies and pushes the pair below this confluence support zone, further declines could expose the 14-month low at 169.72.

On the upside, the primary resistance lies at the 50-day EMA of 180.01. A move above the medium-term price average would cause a bullish reversal, opening the doors for the EUR/JPY cross to approach the upper boundary of the descending channel near 183.60, followed by the all-time high of 187.95, reached on April 17.

Analysts at MUFG highlight a further hawkish shift at the BoJ, noting that in Japan, Bank of Japan Board Member Junko Koeda has “reinforced the case for further tightening,” delivering what they describe as “a more explicit warning against excessive caution than in her previous speech.” They see her latest remarks as underscoring the central bank’s growing readiness to continue normalizing policy.