• EUR/JPY could fall toward the initial support at the nine-day EMA of 177.00.
• The 14-day Relative Strength Index near 49 suggests price consolidation.
• The primary barrier lies at the upper boundary of the descending channel around 178.40.

EUR/JPY gains ground for the second successive day, trading around 177.30 during Asian hours on Tuesday. The technical analysis of the daily chart suggests that the currency cross is remaining within a descending channel pattern, indicating a prevailing bearish bias.

The EUR/JPY cross is maintaining a mildly bearish bias as it holds below the 50-day Exponential Moving Average (EMA) while clinging to short-term support from the nine-day EMA. This configuration suggests rallies remain capped by medium-term supply overhead, even as the 14-day Relative Strength Index (RSI) near 49 hints at a consolidative rather than impulsive downside phase.

The EUR/JPY cross could find the initial support at the nine-day EMA of 177.00, followed by the 12-month low of 175.07, reached on October 30. Further support lies at the lower boundary of its descending channel around 174.00. A break below the channel would open the door for the currency cross to navigate the region around the 15-month low at 169.72.

On the upside, the EUR/JPY cross may rise toward the upper boundary of the descending channel around 178.40, aligned with the 50-day EMA of 178.47. 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 resilience underpinned by intervention and key USD/JPY resistance

Strategists at Rabobank highlight that the Yen has been a notable outperformer this year, observing that “the JPY is the second best performing G10 currency in the half year to date.” They acknowledge that this standing has “been obtained with the support of sizeable FX intervention over 3 days during the summer, which included joint support with the US Treasury,” but stress that recent price action has been more organically supportive. In particular, they note that “the JPY has managed to outperform the USD on a 1-month view,” with the market showing “a clear reluctance to push USD/JPY above the 158.70 area which coincides with the 200-day sma,” underscoring the significance of that technical threshold for the pair.