• EUR/JPY may find immediate support at the 12-month low of 175.10.
• The 14-day Relative Strength Index near 35 reflects weak momentum.
• The primary barrier lies at the nine-day EMA of 176.32.

EUR/JPY inches lower after registering modest gains in the previous day, trading around 175.90 during Asian hours on Thursday. Based on the technical analysis of the daily chart’s descending channel pattern, the currency cross maintains a clear bearish bias.

The EUR/JPY cross is maintaining a bearish near-term bias as it holds below both the nine- and 50-day Exponential Moving Averages (EMAs). The short-term EMA sits under the longer one, reinforcing a downside tone, while the 14-day Relative Strength Index (RSI) around 35 suggests weak momentum that is approaching, but not yet in, oversold territory.

The EUR/JPY cross may fall toward the 12-month low of 175.10, reached on October 23, followed by the lower boundary of its descending channel around 174.60. Further declines below this confluence support zone would open the door for the currency cross to navigate the region around the 15-month low at 169.72.

On the upside, the primary barrier lies at the nine-day EMA of 176.32, followed by the upper boundary of the descending channel near 178.20. Further resistance lies at the 50-day EMA of 178.99. A successful break above the medium-term price average would cause a bullish reversal, supporting the EUR/JPY cross to explore the area around the all-time high of 187.95, reached on April 17.

Yen climbs up G10 rankings as intervention underpins gains

Strategists at Rabobank highlight the improving performance of the Yen within the G10 complex, noting that “the JPY is the second best performing G10 currency in the half year to date after the NOK” and “the fourth best performing G10 currency in the year to date.” They caution, however, that this resilience has not been entirely organic, stressing that “significant amounts of FX intervention in favour of the JPY have been a notable factor in supporting it this year.”