EUR/JPY Falls Below 163.50; Support Found Near Nine-Day EMA

EUR/JPY Price Forecast: Pulls Back Below 163.50 but Holds Support Near Nine-Day EMA

The EUR/JPY currency pair slipped below the 163.50 level during Wednesday’s Asian trading session, ending a two-day winning streak. Despite this pullback, the pair found support near the nine-day Exponential Moving Average (EMA) at 163.01, indicating that short-term momentum remains intact.

Technical indicators show a mixed picture: the 14-day Relative Strength Index (RSI) recently crossed above the 50 mark, signaling a prevailing bullish bias. However, the price currently trades just below the lower boundary of an established uptrend channel, suggesting a temporary pause in the upward momentum.

Looking ahead, a recovery back into the uptrend channel could reaffirm the bullish outlook for EUR/JPY. This would open the door for the pair to revisit the six-month high of 165.21 reached in mid-May, with the next significant resistance level around 166.69—a nine-month high from October 2024.

Overall, while the recent dip signals caution, the technical setup suggests the potential for EUR/JPY to resume its upward trajectory if support levels hold and bullish momentum continues.