EUR/JPY Price Forecast: Treads water above 170.00, near five-week lows

• EUR/JPY may depreciate toward a five-week low at 169.72.
• The 14-day RSI remains below 50, indicating a prevailing bearish bias.
• The nine-day EMA at 171.17 may act as the initial barrier.

EUR/JPY attempts to halt its two-day losing streak, trading around 170.20 during the European hours on Tuesday. The bearish bias is strengthening as the technical analysis of the daily chart shows that the currency cross remains within the descending channel pattern.

The 14-day Relative Strength Index (RSI) is positioned below the 50 mark, suggesting that bearish bias prevails. Additionally, the short-term price momentum is weaker as the EUR/JPY cross remains below the nine-day Exponential Moving Average (EMA).

On the downside, the EUR/JPY cross may find immediate support at the psychological level of 170.00, followed by the five-week low at 169.72, which was recorded on July 31, followed by the 50-day EMA at 169.27. A break below this level could weaken the medium-term price momentum and prompt the currency cross to test the two-month low at 168.46, aligned with the lower boundary of the descending channel.

The primary barrier appears at the nine-day EMA of 171.17, followed by the descending channel's upper boundary around 171.80. A breach above this crucial resistance zone could improve the short-term price momentum and support the EUR/JPY cross to explore the region around 173.90, the highest since July 2024, recorded on July 28, 2025.

EUR/JPY: Daily Chart