EUR/JPY Tests Key Support at 162.50, Bears Eye Breakdown Below Ascending Channel

EUR/JPY Tests Key Support Level Amid Growing Bearish Momentum

EUR/JPY is currently testing support near 162.50, the lower boundary of its ascending channel, signaling a potential bearish shift. The pair has been on a downward trend for the third consecutive session, trading around 162.80 during the Asian session. The 14-day Relative Strength Index (RSI) dipping below 50 further confirms the growing bearish momentum.

On the upside, initial resistance is expected around the 9-day Exponential Moving Average (EMA) at 163.41. If EUR/JPY breaks above this level, it may rekindle bullish sentiment and push the pair toward its recent 6-month high of 165.21.

However, if the pair breaks below 162.50, the next critical support is at the 50-day EMA around 162.23. A move below these levels would confirm a bearish outlook, potentially pushing EUR/JPY towards its two-month low near 155.59, recorded in early March 2025.

Traders will be watching closely for any confirmation of a breakdown below these key levels to signal further declines in EUR/JPY.