EUR/JPY price forecast: Targets 171.50 support after breaking below nine-day EMA

• EUR/JPY may find the initial barrier at the nine-day EMA of 171.95.
• The bullish bias is prevailing as the 14-day Relative Strength Index remains above 50.
• The primary support appears at the psychological level of 171.50.

EUR/JPY loses ground for the third consecutive day, trading around 171.80 during the European hours on Friday. The technical analysis of the daily chart suggests a prevailing bullish bias as the currency cross remains within the ascending channel pattern.

The 14-day Relative Strength Index (RSI) is positioned above the 50 mark, suggesting the bullish bias is active. However, the short-term price momentum is weaker as the EUR/JPY cross moved below the nine-day Exponential Moving Average (EMA).

The EUR/JPY cross could test the immediate barrier at the nine-day EMA of 171.95. A break above this level would strengthen short-term price momentum and support the currency cross to approach the upper boundary of the ascending channel around 173.60, followed by 173.90, the highest since July 2024, recorded on July 28, 2025.

On the downside, the EUR/JPY cross may test the crucial support level at 171.50, followed by the ascending channel's lower boundary around 171.10 and the psychological level of 171.00. A break below this crucial support zone would put downward pressure on the pair to test the 50-day EMA at 170.09, followed by the six-week low at 169.72, which was recorded on July 31. Further declines would prompt the currency cross to reach the two-month low at 168.46, registered on July 1.

EUR/JPY: Daily Chart