• EUR/JPY could find immediate support at the lower boundary of the channel around 176.50.
• The 14-day Relative Strength Index at 36.36 remains weak, signaling persistent selling pressure.
• The primary resistance lies at the nine-day EMA at 178.25.

EUR/JPY inches lower after posting modest gains in the previous day, trading around 177.90 during Asian hours on Wednesday. Technical analysis of the daily chart shows that the currency cross is remaining within the descending channel pattern, suggesting an ongoing bearish bias.

The EUR/JPY cross is retaining a bearish near-term bias as it holds below both the nine-period and 50-period Exponential Moving Averages (EMAs). The short-term EMA sitting under the longer one and price capped beneath this cluster suggests rallies remain corrective, while the 14-day Relative Strength Index (RSI) at 36.36 stays in weak territory, hinting that selling pressure still dominates despite the recent stabilisation off last week’s lows.

The initial support lies at the lower boundary of the channel around 176.50, followed by an 11-month low of 175.70, recorded in November 2025. A break below this confluence support zone would expose the 14-month low of 169.72.

On the upside, the EUR/JPY cross may target the nine-day EMA of 178.25, followed by the 50-day EMA at 181.10. Further resistance lies at the upper boundary of the descending channel around 184.20, followed by the all-time high of 187.95 set on April 17.

BoJ seen in no rush for consecutive rate hikes

Analysts at Rabobank caution that, despite the Bank of Japan’s shift toward stabilizing inflation around its 2% target, “the Bank is still not widely viewed as being in a position in which back-to-back rate rises are appropriate.” This underscores market expectations that any further policy normalization from the BoJ is likely to proceed in a measured, gradual fashion rather than through rapid successive moves.