- EUR/JPY could find primary resistance around the rising wedge top at 187.00.
- The 14-day Relative Strength Index around 60 maintains a bullish bias.
- The primary support lies at the nine-day EMA of 186.18.
EUR/JPY moves little after registering modest gains in the previous day, trading around 186.60 during the Asian hours on Wednesday. The currency cross is maintaining a bullish near-term tone as it holds above both the nine-period and 50-period Exponential Moving Averages (EMAs). The alignment of short- and medium-term EMAs below price suggests ongoing upside pressure.
Additionally, the 14-day Relative Strength Index (RSI) around 60 keeps a constructive bias without yet signaling overbought conditions. However, the daily chart technical analysis shows that the EUR/JPY cross is remaining within a rising wedge, indicating a strong bearish reversal risk.
The EUR/JPY cross may test the initial resistance at the upper boundary of the rising wedge around 187.00. A successful break above the wedge could support the currency cross to target the all-time high of 187.95, which was recorded on April 17.
On the downside, the primary support lies at the nine-day EMA of 186.18, followed by the lower boundary of the rising wedge around 185.60 and the 50-day EMA at 185.39. A break below this confluence support zone could cause a bearish emergence and put downward pressure on the EUR/JPY cross to navigate the region around the five-month low of 181.87, recorded on March 16, and the seven-month low of 180.81.
