EUR/JPY price forecast: Falls to near 171.50 as bearish bias emerges

• EUR/JPY may find its primary support at the 50-day EMA of 170.50.
• Traders will likely look for deeper declines accompanied by strong volume to gain conviction in the bearish outlook.
• The nine-day EMA at 171.89 appears as the initial barrier.

EUR/JPY extends its losses for the second successive session, trading around 171.50 during the European hours on Tuesday. The technical analysis of the daily chart suggests the emergence of a bearish market bias as the currency cross is remaining slightly below the ascending channel pattern. Traders will likely observe further declines with high volume, which could add conviction to the bearish outlook.

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

On the downside, the initial support appears at the 50-day EMA of 170.50, followed by the eight-week low at 169.72, which was recorded on July 31. A break below this crucial support zone would weaken the medium-term price momentum and put downward pressure on the EUR/JPY cross to test the two-month low at 168.46, registered on July 1.

The immediate barrier appears at the nine-day EMA of 171.89, followed by the psychological level of 172.00. If the EUR/JPY cross quickly recovers back into the ascending channel, it would revive the bullish bias and support the currency cross to explore the region around 173.90, the highest since July 2024, recorded on July 28, 2025, followed by the upper boundary of the ascending channel around 175.10.

EUR/JPY: Daily Chart